Suppose Kim purchases a new personal computer produced in China for $1,900. What is the effect on the components of GDP and GDP as a whole? Instructions: If there is no impact on that component enter a O for $0. If there is a positive contribution to the component enter in a the whole dollar amount. If there is a negative contribution to the component enter a negative sign before the dollar amount. Be sure all boxes include a number.
Consumption $
Investment $
Government Expenditures $
Net Exports $
Change in GDP as a result of the transaction $

Consumption $ 1900

Investment 0

Government Expenditures 0

Net Exports -$ 1900

Change in GDP as a result of the transaction 0

Explanation:

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export

Net export = exports – imports

The purchase of the laptop is part of durable consumption. So, consumption increases by $1900

The purchase of the laptop is not by a business or by the government. Investment and government expenditure remains unchanged.

The purchase of the laptop from China constitutes an import activity. Import  increases. But import is a negative function of import, so net export decreases.

Total change in GDP = $1900 + 0 + 0 - $1900 = 0

It made economic sense to the government to fund the shoemaking course because it did not want the fraternity of shoemakers to get diverted to other professions and create an imbalance in the economy merely due to the influence of mechanization in the shoemaking industry.

hope this help!!

Explanation: