Which of the following is an example of a
Government purchase of an aircraft carrier from a
Government payment to a U.S. congressman
Government expenditures on food
Government expenditures to fund
Suppose you are a computer programmer who
lives in the United States and who sells $50,000 of
software via the internet to people in Europe. You
operate your business as a sole proprietorship and you
have no cash expenses. How do the GDP statistics account
for your production?
Because your output is sold outside
the U.S., it does not get counted in U.S. GDP.
Expenditures in the form of exports
are $50,000 and income in the form of proprietors'
income is $50,000.
Expenditures in the form of imports
are $50,000 and income in the form of profit is
Expenditures in the form of
consumption are $50,000 and income in the form of
wages is $50,000.