Question

Dmitri and Frances Cuttner live in Swarthmore, PA. Frances's father, Jake, lives in Sweden.
For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP as part of consumption (C), investment (I), government purchases (G), exports (X), or imports (M).
Transaction CIGXM
Dmitri's employer upgrades all of its computer systems
using U.S.-made parts.
Frances gets a new refrigerator made in the United States.
Dmitri buys a bottle of Italian wine.
The state of Pennsylvania repaves highway PA 320, which
goes through the center of Swarthmore.
Frances's father in Sweden orders a bottle of Vermont
maple syrup from the producer's website.

Answer 1

Answer and Explanation:

As we know that

Gross domestic product =  Consumption + Investment + Government purchase + Net exports

where,  

Net exports = Exports - imports

It is the finailzed value of all goods and services that are produced and consumed within the boundary

These are the 5 parts of the gross domestic product. by this we can easily calculate the gross domestic product

Based on the above, the classifications are as follows

Dmitri's employer upgrades all of its computer systems  using U.S.-made parts.  = Investment as it upgrades all the computer system

Frances gets a new refrigerator made in the United States.  = Consumption. As the new refrigerator consume accrodinhg to the need

Dmitri buys a bottle of Italian wine.  = Import and consumption. It is an import plus consumption first it is purchased and then after purchasing it is consumed

The state of Pennsylvania repaves highway PA 320, which  goes through the center of Swarthmore.  = Government purchase as it is for the benefit of the general public

Frances's father in Sweden orders a bottle of Vermont  maple syrup from the producer's website. = export as it is for the third party so the same come under the export