1. In each of the following cases, determine how much GDP and each of its components is affected (if at all).

General Motors builds $500 million worth of cars, but consumers only buy $470 million of them.

Group of answer choices

Consumption and GDP rises by $200

Investment rises by $1800, net exports fall by $1800, GDP is unchanged

Current GDP and investment do not change, because the computer was built last year.

Consumption rises by $470 million, inventory investment rises by $30 million, and GDP rises by 500 million.

2. In each of the following cases, determine how much GDP and each of its components is affected (if at all).

Sarah spends $1800 on a new laptop to use in her publishing business. The laptop was built in China.

Group of answer choices

Consumption and GDP rises by $200

Investment rises by $1800, net exports fall by $1800, GDP is unchanged

Current GDP and investment do not change, because the computer was built last year.

Consumption rises by $470 million, inventory investment rises by $30 million, and GDP rises by 500 million.

3. In each of the following cases, determine how much GDP and each of its components is affected (if at all).

Debbie spends $200 to buy her husband dinner at the finest restaurant in Boston.

Group of answer choices

Consumption and GDP rises by $200

Investment rises by $1800, net exports fall by $1800, GDP is unchanged

Current GDP and investment do not change, because the computer was built last year.

Consumption rises by $470 million, inventory investment rises by $30 million, and GDP rises by 500 million.