Explain Which Expenditure Category of GDP Changes and the Direction

question 70

Essay

Explain which expenditure category of GDP changes and the direction of the change that results for each transaction described.
a. A domestic business purchases a domestically produced computer to use in a business office.
b. A domestic business produces a computer that is sold to a foreign company.
c. The Federal Government purchases a domestically produced computer to use in a courthouse. d. A domestic household purchases a domestically produced computer to use in a home.
e. A domestic household purchases a computer produced in a foreign country to use in a home.

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Definitions:

Continuous Innovation

The ongoing process of making incremental improvements or updates to products, services, or processes to maintain competitiveness.

Spontaneous Innovation

The process of creating new and inventive ideas or products without a premeditated plan, often resulting from sudden inspiration.

Quadpacer Interval Timer

A feature commonly found in electric toothbrushes that indicates to users when to switch to cleaning a different quadrant of the mouth.

Discontinuous Innovation

Introduces a product or service that fundamentally changes an industry or how consumers interact with a market, often rendering existing solutions obsolete.