1.Explain how each of the scenarios below would affect the GDP of the US.In particular indicate which component of the expenditure approach to GDP (C+I+G+NX) would be affected.

Example:Consumers in the US bought $6B of furniture which was made in the US.

Answer:Furniture made in the US bought by consumers counts as consumption, so consumption increases by $6B and GDP increases by $6B

a.Consumers in the US bought $6B of furniture which was made in Sweden.

b.Firms in the US bought $6B of furniture which was made in the US.

c.Firms in the US bought $6B of furniture which was made in Sweden.

d.Whirlpool (a US company that makes appliances) originally reported that they produced (in the US) and sold $20B worth of appliances to consumers in the US.Upon further review of their data, the numbers have been revised as they actually only sold $15B to consumers, with the remaining $5B being held in inventory by Whirlpool. How would this revision effect GDP estimates? (Note: GDP is revised regularly because of things like this.)

e.A student from Germany comes to Michigan and pays $20,000 in tuition for courses at a university in Michigan.

f.I (your lovely professor) win the lottery!I am given a check for $6.2M from the State of Michigan.

g.Ms. Smith buys a house (this year) that was built in 1960. She pays $300,000 to the previous owners for the house, and pay $18,000 to the real estate agents who brokered the transaction.