pretty easy stuff just keep second guessing myself.

6. Components of GDP (3 points) Explain which expenditure category of GDP changes
and the direction of the change that results for each transaction described.

a. A domestic business purchases a domestically produced computer to use in a
business office.
Investments - increase
b. A domestic business produces a computer that is sold to a foreign company.
Net exports - increase
c. The federal government purchases a domestically produced computer to use in a
court house.
Government - increase
d. A domestic household purchases a domestically produced computer to use in a
home.
Consumer consumption - increase
e. A domestic household purchases a computer produced in a foreign country to use
in a home.
Not sure I think it would be no effect on GDP, but I'm not sure if it would be Net exports with a decrease in GDP.


So he wants us to label which part of C+I+G+NX GDP would go towards.

This post was edited by Barcelona1011 on Jan 20 2014 06:01pm

Answers for a-d seem correct. Part e is an import which causes NX to decrease, which subsequently decreases GDP.

Sweet that's what I thought I just wasn't sure. Thanks!