Instructions
Discuss which of the following fall into the categories of consumption, investment, government expenditure and net exports from the Y=C+I+G+NX (X-M) identity, and whether the impact is to increase or decrease GDP. (a) Charles buys a second-hand textbook from Tim. (b) When Charles bought the book, he paid Sarah $10 to collect it from Tim. (c) Thomas buys a new house. (d) Your firm sells meat to Indonesia (e) The fish and chips shop down the road buys fish to make meals for diners. (f) The same shop buys a deep fryer to fry fish for meals
d
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