Econ 202: Principles of Macroeconomics
1) Explain how the following transactions are accounted for in the expenditure approach of calculating GDP. Denote whether the expenditure approach would categorize the spending as C (household consumption), G (government spending), I (gross private investment), EX(exports), IM (imports), or whether the transaction would be not fall in any of these cate-gories.
A. A housing developer sells 25 newly constructed condos in the Northern Liberties sectionof Philadelphia.
B. A comic book store sells a vintage 1998 Amazing Spiderman comic to an avid collector.
C. Hewlett Packard sells 250 new computers to the Internal Revenue Service (of the USGovernment).
D. Chipotle Restaurant buys 2 tons of avocados from California.
E. Chipotle Restaurant buys 2 tons of avocados from Mexico.
2) The market basket for an imaginary consumer is given below, as are the prices over the course of three years.