Determine whether each of the following transactions will be counted in the 2005 GDP of the United States. If the transaction is counted, identify which expenditure component (personal consumption, gross investment, government consumption and gross investment, or net exports) will be affected
a. Norm, a frequent visitor to a local bar, purchases a Budweiser beer. (Budweiser beer is domestically produced.)
b. The owner of the local bar purchases a new domestically made cooler unit in which to store his beer.
c. Carla, a U.S. foreign exchange student, works her way through college in Germany as a waitress in a bar.
d. On her night off, Carla purchases a Budweiser beer for her friend in the German bar.
a. This is counted in U.S. GDP as a personal consumption expenditure.
b. This is counted in U.S. GDP as an investment expenditure.
c. This is not counted in U.S. GDP (but would be counted in U.S. GNP).
d. This is counted in U.S. GDP as an export.
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A depreciation of the Mexican peso relative to the U.S. dollar would ________ Mexican firms that are exporting goods to the United States and would ________ Mexican firms that have borrowed in U.S. dollars
A) help; help B) help; hurt C) hurt; help D) hurt; hurt
The branch of economics that focuses primarily on aggregates is:
A. consumer economics. B. microeconomics. C. macroeconomics. D. scientific economics.