Grab a blank sheet of paper and try some GDP analysis on your own. Take a picture or scan your sheet, and upload it after you are finished. This contributes to your participation grade in the class.

1. Because it is counted as investment, why doesn't the purchase of earthmoving equipment from China by a U.S. corporation increase U.S. GDP?
2. Identify the immediate effect of each of the following events on U.S. GDP and its components:

• James receives a Social Security check.
• John buys an Italian sports car.
• Henry buys domestically produced tools for his construction company.