Rajiv and Simone Redondo live in Swarthmore, PA. Simone's father, Yakov, lives in Sweden.

For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP as part of consumption (C), investment (I), government purchases (G), exports (X), or imports (M). Check all that apply.

a. The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore.
b. Simone gets a new refrigerator made in the United States.
c. Simone's father in Sweden orders a bottle of Vermont maple syrup from the producer's website.
d. Rajiv's employer upgrades all of its computer systems using U.S.-made parts.
d. Rajiv buys a sweater made in Guatemala.

The Government purchases/ expenditure portion of GDP includes the expenses by Government on the economy. This expenditure by the Pennsylvania Government will therefore come under here.

b. Simone gets a new refrigerator made in the United States. - Consumption (C).

Consumption accounts for spending by households and individuals in the economy. Simone lives in the US and buys goods in the US so this is Consumption.

c. Simone's father in Sweden orders a bottle of Vermont maple syrup from the producer's website. - Exports (X)

Exports are goods made in a country which are then sold to consumers outside the country. Simone's father is in Sweden so buying an American product is an export for the United States.

d. Rajiv's employer upgrades all of its computer systems using U.S.-made parts. - Investment (I).

Investment refers to spending by private interests that are aimed to improve capital goods in the economy. Spending on upgrading computer systems therefore falls here.

e. Rajiv buys a sweater made in Guatemala. - Imports (M)

When a person buys a good that is made outside the country, this is an import.