2. Accounting for trade in goods and services Suppose the following transactions occur during the current year: 1. Rajiv orders 50 cases of mezcal from a Mexican distributor at a price of $90 per case. 2. A U.S. company sells 300 spark plugs to a Korean company at $5.00 per spark plug. 3. Yakov, a U.S. citizen, pays $1,500 for a computer he orders from Honeycrisp (a U.S. company). Complete the following table by indicating how the combined effects of these transactions will be reflected in the U.S. national accounts for the current year. Hint: Be sure to enter a "0" if none of the transactions listed are included in a given category and to enter a minus sign when the balance is negative. Consumption Investment Government Purchases Imports Exports Net Exports Gross Domestic Product (GDP) Amount (Dollars)

2. Accounting for trade in goods and services Suppose the following transactions occur during the current year: 1. Rajiv orders 50 cases of mezcal from a Mexican distributor at a price of $90 per case. 2. A U.S. company sells 300 spark plugs to a Korean company at $5.00 per spark plug. 3. Yakov, a U.S. citizen, pays $1,500 for a computer he orders from Honeycrisp (a U.S. company). Complete the following table by indicating how the combined effects of these transactions will be reflected in the U.S. national accounts for the current year. Hint: Be sure to enter a "0" if none of the transactions listed are included in a given category and to enter a minus sign when the balance is negative. Consumption Investment Government Purchases Imports Exports Net Exports Gross Domestic Product (GDP) Amount (Dollars)

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter29: Exchange Rates And International Capital Flows

Section: Chapter Questions

Problem 11RQ: Describe some buyers and some sellers in the market for U.S. dollars.

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