Answer to Question #264186 in Macroeconomics for Evelyn Aduamoah Ba

Question

What components of GDP (if any) would each of the following transactions affect? Explain.

a. Kantanka automobile sells a car from its inventory.

b. family buys a new refrigerator from US.

c. Aunt Jane buys a new house.

d. You buy fish and chips.

e. The government resurfaces University Road.

f. Kantanka builds an assembly plant in Accra.

g. Your parents buy a bottle of French wine.

h. Kofi buys wood, which is used to produce tables

i. Ama a Ghanaian national buys a new hotel in the UK.

Answer 1

a. Kantanka automobile sells a car from its inventory- consumption

b. family buys a new refrigerator from US- net exports

c. Aunt Jane buys a new house-investment

d. You buy fish and chips-consumption

e. The government resurfaces University Road-government spending

f. Kantanka builds an assembly plant in Accra-investment

g. Your parents buy a bottle of French wine-consumption

h. Kofi buys wood, which is used to produce tables- investment

i. Ama a Ghanaian national buys a new hotel in the UK-net exports