Answer
a) consumption increases
b) investment increases
c)Consumption increases
d)Consumption increases
e)Government purchases increase
f)Consumption increases
g)Investment increases
Work Step by Step
a) increases because the refrigerator is a good purchased by a household
b) house is an investment good
c) car is a good purchased by a household, but investment decreases because the car in Ford’s inventory had been counted as an investment good until it was sold.
d) pizza is a good purchased by a household
e)the government spent money to provide a good to the public.
f) bottle is a good purchased by a household, but net exports decrease because the bottle was imported.
g)new structures and equipment were built
