For each of the following transactions, state the effect both on U.S. GDP and on the four

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For each of the following transactions, state the effect both on U.S. GDP and on the four components of aggregate expenditure. LO2

a. Your mother buys a new car from a U.S. producer.

b. Your mother buys a new car imported from Sweden.

c. Your mother’s car rental business buys a new car from a U.S. producer.

d. Your mother’s car rental business buys a new car imported from Sweden.

e. The U.S. government buys a new, domestically produced car for the use of your mother, who has been appointed the ambassador to Sweden.

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Principles Of Macroeconomics

ISBN: 9780077331542

4th Edition

Authors: Robert Frank, Ben Bernanke

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