(4 points) Goal: Master the expenditure approach. Consider the following data:

Households spend $10 million on domestically produced goods and $5 million on foreign

goods and $5 million on new housing.

Firms spend $5 million on new machinery produced by domestic firms and $3 million on

machinery produced by foreign firms.

Firms fail to sell $2 million of goods. They sell $15 million worth of goods to foreigners.

The government spends $10 million on schools. It pays (transfers) $10 million to retired

people.

1 point for each part below. Circle the correct answer.

i. C is:

a $15 million.

b $20 million.

c $25 million.

ii. I is:

a. $5 million.

b. $10 million.

c. $13 million.

d. $15 million.

iii. NX is:

a. $7 million.

b. $10 million.

c. $15 million.

iv. G is:

a. $0 million.

b. $10 million.

c. $20 million.

4. (1 point) US truck rental company U-haul purchases two new trucks for $80000 from a US

truck manufacturer. Assume that the US truck manufacturer uses no imported intermediate

goods. U-haul rents one truck to a student who pays $100 and uses it to move his stuff from

home to school. On returning the truck to U-haul he crashes and destroys it. The second

truck is rented to a farmer for $200. She uses the truck to transport strawberries to a local

farmer's market. She sells all $1000 of strawberries she has grown. She uses no imported

intermediate goods and rents the truck in perfect condition to U-haul.

How much is GDP augmented by the economic activity described in this paragraph?

This