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May 23, 2015

Homework Help: Economics

Posted by Sally on Wednesday, April 4, 2007 at 9:37pm.

What components of GDP (if any) would each of the following transactions affect?
Explain.
(b) Aunt Jane buys a new house.
(c) Ford sells a Mustang from its inventory.
(g) Honda expands its factory in Marysville, Ohio.

My Answers:
(b) Investment since I read that new housing is included in Investment component of GDP.
(c) Nothing since would it being sold from their inventory would be negative in GDP.
(g) Investment since a firm is expanding their factory.

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