Consider the following transactions that occur during the current year: 1.Musashi, a liquor store owner in Canada, orders 30 cases of mescal from a Mexican distributor at a price of $90.00 per case.2.A Canadian company sells 100 video processor chips to a Chinese company at $10.00 per chip.3.Sean, a Canadian citizen, pays $670 for a surfboard he orders from Greatwaves (a Canadian company). GDP = C+I+G+NXNet Exports (NX) = Exports−ImportsGDP = C+I+G+(X−M) 2. Accounting for trade in goods and servicesConsider the following transactions that occur during the current year:1. Musashi, a liquor store owner in Canada, orders 30 cases of mescal from a Mexican distributor at a price of $90.00 per case.са2. A Canadian company sells 100 video processor chips to a Chinese company at $10.00 per chip.3. Sean, a Canadian citizen, pays $670 for a surfboard he orders from Greatwaves (a Canadian company).Complete the following table by indicating how the combined effects of these transactions will be reflected in Canadian national accounts for thecurrent year.Hint: Remember to enter a minus sign when the balance is negative.Amount(Dollars)ImportsExportsDomestic SpendingNet ExportsGross Domestic Product (GDP)

Gross domestic product is the sum of domestic spending (equal to consumption spending, investment…

Answered: 2. Accounting for trade in goods and…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consider the following transactions that occur during the current year:

1.	Musashi, a liquor store owner in Canada, orders 30 cases of mescal from a Mexican distributor at a price of $90.00 per case.
2.	A Canadian company sells 100 video processor chips to a Chinese company at $10.00 per chip.
3.	Sean, a Canadian citizen, pays $670 for a surfboard he orders from Greatwaves (a Canadian company).

GDP = C+I+G+NX

Net Exports (NX) = Exports−Imports

GDP = C+I+G+(X−M)

2. Accounting for trade in goods and services
Consider the following transactions that occur during the current year:
1. Musashi, a liquor store owner in Canada, orders 30 cases of mescal from a Mexican distributor at a price of $90.00 per case.
са
2. A Canadian company sells 100 video processor chips to a Chinese company at $10.00 per chip.
3. Sean, a Canadian citizen, pays $670 for a surfboard he orders from Greatwaves (a Canadian company).
Complete the following table by indicating how the combined effects of these transactions will be reflected in Canadian national accounts for the
current year.
Hint: Remember to enter a minus sign when the balance is negative.
Amount
(Dollars)
Imports
Exports
Domestic Spending
Net Exports
Gross Domestic Product (GDP)

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