Explain Which Expenditure Category of GDP Changes and the Direction

question 91

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 domesti cally 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:

Deferred Contribution Revenue

Revenue recognition principle wherein contributions or gifts received by an entity are deferred and recognized as income over time or when specific conditions are met.

Accumulated Depreciation

The total amount by which an asset's carrying value has been reduced over time to reflect wear and tear, obsolescence, or impairment.

Commercial Refrigerator

A refrigerator designed for commercial use with greater capacity and robustness for storing larger quantities of perishable goods, often found in restaurants and grocery stores.

Donated Goods

Items given without expectation of payment, often to charities or non-profit organizations.