Macro homework2 - Homework Chapter 7:1-10 1. Identify the...

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Homework Chapter 7:1-10 1. Identify the component of aggregate expenditure to which each of the following belongs a. A U.S. resident’s purchase of a new automobile manufactured in Japan- Net Exports b. A household’s purchase of one hour of legal advice- Consumption c. Construction of a new house- Investment d. An increase in semiconductors inventories over last year’s level- Investment e. A city government’s acquisition of ten new police cars- Government purchases. 2. Define Gross Domestic Product. Determine whether each of the following would be included in the 2004 U.S. gross domestic product: Gross Domestic Product is a measure of the market value of all goods and services produced during a year by resources located in the United States, regardless of who owns the resources. a. Profits earned by Ford Motor Company in 2004 on automobile production in Ireland- Not included. b. Automobile parts manufactured in the United States in 2004 but not used until 2005- Included c. Social Security benefits paid by the U.S. government in 2004- not
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Macro homework2 - Homework Chapter 7:1-10 1. Identify the...

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