just D 7. Which of the following transactions will be included in GDP for the United States?For each, indicate (1) whether it is included in GDP or not (2) which, if any component(s) ofGDP will change (indicate if it will increase or decrease), or (3) if not included in GDP, statewhy, and, if any components of GDP will change, indicate which, and if there would be anincrease or decrease.(91)a. You buy a new economics textbook from your college bookstore.b. Your family buys a newly constructed house from a builder.c. Your grandmother receives a Social Security check.d. The U.S. Department of Defense buys 10 fighter jets from a U.S. company.

There are four components of GDP:- GDP=C+I+G+NX Where; C= Consumption spending I= Investment G= Government spending NX= Net export An increase in the value of any components leads to a rise in the value of the GDP and vice-versa.(a) You buy a new economics textbook from college bookstore is included in GDP. Because you are paying for a service with your college education. Because all of your tuition goes toward paying for some piece of the service, college tuition payments are classified as consumption and buying economics book from college bookstore is part of the tuition as well as consumption. You are still consuming any other service, whether the product you "consume" is material that is food, car, computer, etc. or intangible that is tutoring, study, etc. (b) My family buys a newly constructed house from a builder is included in GDP. Because a home is a large investment. It isn't something that is depleted over time. You live in it for a year and it's still worth the same amount, everything else being equal. It's worth noting that housing has an impact on consumption. The purchase price is deducted from the investment component, however if you renting your home out, the rental income is reported as consumption. In addition, if you own your home, an estimated rental cost is determined. This is a rough estimate of what you'd get if you rented it out. This imputed rent is also taken into account when calculating consumption. (c) Grandmother received a social security check will not included in GDP. Because social Security benefits are not counted as part of the gross domestic product in the United States (GDP). Payments from Social Security are not included because they are transfer payments. 1 When they are used to purchase something, however, they are classified as personal consumption expenditures (PCE). As a result, counting the government's Social Security payments to the beneficiary would constitute counting the same money twice. Transfer payments (cash transferred from one party to the other) such as Social Security, Healthcare, unemployment benefits, welfare programmers, and subsidies are not included in government spending for computing GDP. They do not reflect a type of final demand, commonly known as GDP, because they are not payments for goods or services. (d) This is included in GDP for the United States. When the US department of defense buys 10 fighter jets from a US company then it leads to a increase in government expenditure because the US department of defense is a government body and the fighter gets are manufactured within the U.S. borders.. This leads to a rise in the value of government expenditure that results in a rise in the GDP. GDP=C+I+G+(X-I)