Determine Whether Each of the Following Transactions Will Be Counted

question 218

Essay

Determine whether each of the following transactions will be counted in the 2005 GDP of the United States. If the transaction is counted, identify which expenditure component (personal consumption, gross investment, government consumption and gross investment, or net exports) will be affected.
a.Norm, a frequent visitor to a local bar, purchases a Budweiser beer. (Budweiser beer is domestically produced.)
b.The owner of the local bar purchases a new domestically made cooler unit in which to store his beer.
c.Carla, a U.S. foreign exchange student, works her way through college in Germany as a waitress in a bar.
d.On her night off, Carla purchases a Budweiser beer for her friend in the German bar.

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Definitions:

Lamellated (Pacinian) Corpuscle

A type of nerve ending in the skin that is sensitive to pressure and vibration.

Merkel Cell

A type of skin cell that functions as a mechanoreceptor, involved in the sense of touch and texture.

Ciliary Body

A structure in the eye that produces aqueous humor, contributes to intraocular pressure, and plays a role in changing the shape of the lens to focus light.

Suspensory Ligaments

Suspensory ligaments are fibrous tissues that support organs or parts, notably the lens of the eye, maintaining its position and shape.