Macroeconomics: GDP

posted by .

John (who lives in "Statsyan"--nation) buys a new mini Cooper, which is assembled in England. What part of the GDP component(s) does this transaction belong to?

I'm thinking it belongs to both the imports and consumption categories, but I'm not sure if it is possible to list one transaction under more than one GDP component.


IKEA, a Swedish furniture store, produces a good at a plant in Quebec on June 4th 2005,. It sells the table to *collegeCAN* student on February 7th 2006. Would this transaction be included in *theUSCAN*'s GDP in 2006?

I'm confused by this question because of the way it is worded...I'm thinking it is not part of the GDP because the nation, *theUSCAN* isn't the same as *collegeCAN*??? These two are two different nations??? So confused...

  • Macroeconomics: GDP -

    1) I believe you are correct, the mini is both consumption C and an import M. In the GDP measure they cancel each other out, so the purchase does not change GDP.

    2) I too am confused by the question. Sorry.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. economics please help

    this is a table with some questions and i don't know how to solve it (1)real domestic output (GDP=DI) in billions $200 $250 $300 $350 $400 $450 $500 $550 (2)aggregate expenditures private closed economy billions $240 $280 $320 $360 …
  2. Economics

    What components of GDP (if any) would each of the following transactions affect?
  3. Economics

    Can someone please help. What components of GDP (if any) would each of the following transactions affect?
  4. macroeconomics

    Show that the expenditure approach and the income approach add up to the same figure: consumption $5000 investment $1000 depreciation $600 Profits $900 Exports $500 Compensation of Employees $5,300 Government purchases $1000 Direct …
  5. Macroeconomics

    Calculating the Rate of Growth of Per Capita Real GDP The annual rate of growth of real GDP in a developing nation is 0.3 percent. Initially, the countries' population was stable from year to year. Recently, however, a significant …
  6. macroeconomics

    Year - 2000 Nominal GDP: 9,817 Real GDP: ___________ GDP Deflator: 1 Inflation 2.2 Real GDP Per capita: _________ Population 283.7 Year – 2001 Nominal GDP: ________ Real GDP: 9,891 GDP Deflator: _________ Inflation 2.4 Real GDP Per …
  7. Macroeconomics - GDP

    Please check my answers to see if they are correct, if not, can you please fix them! Thank you. American citizens buy something made from an American company in Japan who uses all Japanese labour and machines. Would the following increase, …
  8. Macroeconomics

    Which of the following aren't included in the measurement of GDP?
  9. Economics

    This chart shows the components of nominal GDP for the years 2000 and 2001. All figures are in billions of current dollars. -------------------------------------------------------------------------------- Components 2000 2001 -------------------------------------------------------------------------------- …
  10. Macroeconomics

    Where are we in the business cycle? What is the real GDP today?

More Similar Questions