For each of the following transactions, 1) determine whether it should be included in the calculation of GDP using expenditure approach and 2) if the answer is yes, which component of expenditure should it be included, if the answer is no, briefly explain why. John bought 1000 shares of Microsoft stocks at $50 per share Honda built a factory plant worth $1 million in Detroit • Karl received $100 unemployment benefits
For each of the following transactions, 1) determine whether it should be included in the calculation of GDP using expenditure approach and 2) if the answer is yes, which component of expenditure should it be included, if the answer is no, briefly explain why. John bought 1000 shares of Microsoft stocks at $50 per share Honda built a factory plant worth $1 million in Detroit • Karl received $100 unemployment benefits
Chapter9: Aggregate Demand
Section: Chapter Questions
Problem 3.7P
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Question
![For each of the following transactions, 1) determine
whether it should be included in the calculation of GDP
using expenditure approach and 2) if the answer is yes,
which component of expenditure should it be included,
if the answer is no, briefly explain why.
• John bought 1000 shares of Microsoft stocks at
$50 per share
• Honda built a factory plant worth $1 million in
Detroit
• Karl received $100 unemployment benefits](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3d613177-1fa2-4948-8e11-da575ea46d64%2F7f41365e-28f2-44a5-8534-cf6f5c1af1e6%2F05ldm0n_processed.jpeg&w=3840&q=75)
Transcribed Image Text:For each of the following transactions, 1) determine
whether it should be included in the calculation of GDP
using expenditure approach and 2) if the answer is yes,
which component of expenditure should it be included,
if the answer is no, briefly explain why.
• John bought 1000 shares of Microsoft stocks at
$50 per share
• Honda built a factory plant worth $1 million in
Detroit
• Karl received $100 unemployment benefits
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