Econ 362Chapter 2 – Problems and Applications4. Place each of the following transactions in one of the four components of expenditure:consumption, investment, government purchases, and net exports.b. Boeing sells an airplane to American Airlines – Investment
c. Boeing sells an airplane to Air France – Net exports
d. Boeing sells an airplane to Amelia Earhart – Consumptione. Boeing builds an airplane to be sold next year – Investment
5. Find data on GDP and its components, and compute the percentage of GDP for the followingcomponents for 1950, 1980, and the most recent year available.GDP -1950– 294.3;1980– 2795.6;2012– 15684.8a. Personal consumption expenditures –1950– 192.7;1980 –1762.9;2012– 11119.6b. Gross private domestic investment –1950– 54.1;1980– 477.9;2012– 2062.3c. Government purchases –1950– 46.8;1980– 567.5;2012– 3089.9d. Net exports –1950– 0.7;1980– -14.9;2012– -559.5e. National defense purchases –1950– 19.7;1980– 167.7;2012– 809.2f. Imports –1950– 11.6;1980– 293.8;2012– 2774.0
