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For each of the following transactions, determine whether or not the transaction would be included in the GDP calculation by the government. If so, state which category, C or I or G or NX. In the case of NX, state if it would be added or subtracted.
If the calculation is NOT included in the C + I + G + (X – M) GDP calculation, please state why.
A.Genentech, a private company, builds a new laboratory in South San Francisco.
B.Muni (the San Francisco Municipal Railway), builds a new garage for its buses.
C.General Motors Corp. buys 500,000 windshields from another Michigan company.
D.General Motors Corp. sends 500,000 cars to be sold in Saudi Arabia.
E.Your roommate buys a 2009 Toyota Camry.
F.You buy $10,000 in Apple Corp. stock with money your grandmother gives you.
G.A real estate developer builds 20 new homes on Brotherhood Way in San Francisco.
H.You pay Merry Maids to clean your house.
I.Your grandmother receives her $900 Social Security retirement check.
J.Starbucks buys coffee beans.
K.Starbucks hires a repairman to fix their broken espresso machine.
L.You buy $100 in imported frozen shrimp from the market to cook a gourmet dinner for 20 of your friends.
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