Consumption-investment-government purchases

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Reference no: EM1312930

Explain which of the following transactions would be directly counted in 2007's GDP. In each case, explain whether the action causes an increase in Consumption, Investment, Govt. Purchases or Net Export. If the transaction is not included in 2007's GDP, explain why not.

(a) You purchase $5000 worth of Google's stock.

(b) A record company produces 500, 000 CDs of a new artist. Only 100,000 are sold at the price of $15.00.

You fix your friend's car saving him $300.00 and in return, he paints your house saving you $400.00.

Reference no: EM1312930

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