Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 23 - Part VIII - Measuring a Nation's Income - Problems and Applications - Page 503: 1


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
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