Answer to Question #146185 in Macroeconomics for Peeriya

Question

Q1. What components of GDP ( if any) would each of the following transactions effect? explian.
a) a family buys a new refrigerator
b) aunt jorah buys a new house
c) proton sells a perdan from its inventory
d) you buy a roti canai
e)PLUS repaves North-South highway
f) your parents buy a bottle of French wine
g) Toyota expands its factory in Shah Alam, Selangor

Answer 1

a ) a family buys a new refrigerator

This transaction influences the consumption component of GDP in light of the fact that a new refrigerator is bought by households to meet their own needs.

b) aunt jorah buys a new house

. It influences the Investment component of GDP in light of the fact that a new house is one type of household spending category.

c) proton sells a perdan from its inventory

It doesn't add to the change in GDP in light of the fact that an item in stock has already been estimated as an investment component of GDP growth.

d) you buy a roti canai

. This transaction influences the consumption component of GDP in light of the fact that the household spends money on service which is a personal hairstyle.

e)PLUS repaves North-South highway

It influences the government expenditure component of GDP since the government spends money to recruit laborers and offer support to repave Highway to people in general.

f) your parents buy a bottle of French wine

The gross domestic product doesn't change in light of the fact a bottle of French wine is purchased locally so the consumption component of GDP will grow; notwithstanding, it is created by foreigners so net export will fall subsequently GDP stays unaltered) 

g)Toyota expands its factory in Shah Alam, Selangor

. It will influence the investment component of GDP because a new factory structure has expanded to make more profits in the future.

.