clarifying goods and gpd transactions

identify which item is an intermediate final good/service. 

A car manufacturer purchases tires to install in new cars.

identify which item is a final good/service. 

A consumer buys a loaf of bread from a grocery store,

 A tourist pays for a hotel room,

A tech company buys software licenses for internal use.

identify which transactions or activities should be included in the estimation of the GDP.

A family buys a new refrigerator

A company builds a new factory.

A foreign tourist buys souvenirs in New York.

identify which transactions or activities should NOT be included in the estimation of the GDP.

a bakery buys flour to make bread 

identify which transactions should be classified as Consumption (C) in the GDP using the expenditure approach.

A family renovates their kitchen.

A college student pays tuition to a private university.

identify which transactions should be classified as Investment (I) in the GDP using the expenditure approach.

a tech startup develops software for eternal use

identify which transactions should be classified as Government Spending (G) in the GDP using the expenditure approach.

A government builds a new highway

identify which transactions should be classified as part of Net Exports (NX) in the GDP using the expenditure approach. Note: NX=X-M

A domestic car manufacturer ships vehicles to dealerships in Canada

 An American winery exports bottles of wine to France.

 A retailer in the U.S. imports furniture from Italy

final good

is a product or service that is purchased by the end user and not used to produce other goods or services. It is ready for consumption or investment and is included in GDP.

intermediate good

is a product that is used as an input in the production of other goods or services. Its value is already included in the final product, so it is not counted separately in GDP to avoid double

consumption 

Spending by households on goods and services such as food, clothing, rent, healthcare, and entertainment. Includes: durable goods, nondurable goods, and services.

investment

Spending by businesses on capital goods like machinery, buildings, and technology, and by households on new housing. Includes: business equipment, construction, and inventory changes.

government spending

Expenditures by government on goods and services such as infrastructure, public employee salaries, and defense. Includes: roads, schools, military equipment. Excludes: transfer payments like pensions or unemployment benefits.