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Which of the following is  is included in the calculation of Canadian GDP as part of...

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mavig | Student, Grade 11 | (Level 2) Honors

Posted October 6, 2012 at 7:18 PM via web

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Which of the following is  is included in the calculation of Canadian GDP as part of consumption?

Carl and Beck lane live in Halifax. Their son, victor owns his own plumbing business.

 

carl buys a sweter made in guatemala

carl's empoyer assigns him to provide consulting services to an australian firm that's opening a manufacturing facility in china.

becky gets a new video camera made locally

the province of nova scotia repaves highway 102, which connect halifax and halifax stanfield international airport

victor buys a new set of tools to use in his plumbing business

 

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

Posted October 6, 2012 at 8:43 PM (Answer #1)

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Gross Domestic Product (GDP) is made up of the expenditures by consumers, governments, and by businesses (on capital investment).  It is also includes net exports (exports minus imports). 

Of the transactions that you list, only Becky’s purchase of the video camera would be counted in Canada’s GDP.  The sweater is a consumer good, but it is an import.  The work that Carl does is spending by a business.  The road is government spending.  The new set of tools is also business spending because Carl is not buying those tools as a consumer.  If he bought them to use at home, they would be part of consumer spending.

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