Alex and Becky Fogarty live in Swarthmore, PA. Becky's father, Clancy, lives in Sweden.
For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U. S. GDP as part of consumption (C), investment (I), government purchases (G), exports (X), or imports (M).
Check all that apply.
Transactions:
1. Becky gets a new video camera made in the United States.
2. The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore.
3. Alex buys a sweater made in Guatemala.
4. Becky's father in Sweden orders a bottle of Vermont maple syrup from the producer's website.
5. Alex's employer upgrades all of its computer systems using U. S.-made parts.

1. Becky gets a new video camera made in the United States - consumption (C)

This purchase is included in consumption because Becky, who lives in PA, bought a domestically produced product.

2. The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore - government purchases (G)

Government purchases is also known as government spending, and state investment in a highway is a form of government spending.

3. Alex buys a sweater made in Guatemala -  imports (M)

Alex is an American who lives in PA, and bought a good made in Guatemala, a foreign country. Thus, his purchase is an import.

4. Becky's father in Sweden orders a bottle of Vermont maple syrup from the producer's website - exports (X)

The father lives in Sweden, and has purchased a good made in America. The good is an export.

5. Alex's employer upgrades all of its computer systems using U.S.-made parts - investment (I)

The employer has made a private investment with the hope of obtaining more economic profit in the future. This is an investment.

answersituation analysis;