Q4

Discuss which of the following fall into the categories of consumption, investment, government expenditure and net exports from the Y = C + I + G + NX (X - M) identity, and whether the impact is to increase or decrease GDP.

(a) Charles buys a second-hand textbook from Tim.

(b) When Charles bought the book, he paid Sarah $10 to collect it from Tim.

(c) Thomas buys a new house

(d) Your firm sells meat to Indonesia

(e) The fish and chips shop down the road buys fish to make meals for diners.

(f) The same shop buys a deep fryer to fry fish for meals.