For each of the following transactions, state the effect both on U.S. GDP and on the four
Question:
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.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Question Posted: