EC 202 Gross Domestic Product

II. In the national income accounts, what is the difference, if any, between the activities listed below? Instructions: Indicate where m activity would be recorded on the expenditure side of GDP accounting [your choices are C (consumption), I (investment), G (government purchases), Ex (exports), gm (imports), and NR (not recorded)]. For C, I and G identi the commnem' of these types of spending (for consumption spending expenditures on current consumption, expenditures on durable goods, payments for services; for investment spending expenditures on new equipment, expenditures on new non residential construction, expenditures on new residential construction, inventory investment; for government purchases .. expenditures on consumption goods, expenditures on investment goods; payments to government employees). For NR ive a brief ex [auction of the reason in each case Instruction. Do not rewrite the tasks, put your answers in the following table: - The rst transaction The second transaction I (a) A rm buys a laptop for an executive, and a rm pays the executive additional income to buy the laptop herself. (b) A housewife buys sh from a sherman, and a seafood restaurant buys sh from this sherman. (c) An airplane producer buys a company producing meg, and an airplane producer buys mfrom a one. company. (d) An advertising agency purchases a new computer printer for its staff, and an advertising agency purchases toner for the computer's printer. (e) A family buys a new apartment from the construction rm, and a family buys a new apartment 'om another family. (1) A department store hires a retail salesmlerk for the summer, and a department store buys goods 'om the wholesaler. (g) Mother buys a new automobile produced abroad to her son, and a taxi driver buys an automobile from the foreign cornpany producing them in his country