02 May Question: National income and product data are generally revised. What effects would the following revision…
National income and product data are generally revised. What effects would the following revisions have on consumption, investment, government purchases, net exports, and GDP? Give adequate explanation.
a. It is discovered that consumers bought $6 billion more furniture than previously thought. This furniture was manufactured during the current year in North Carolina.
b. It is discovered that consumers bought $6 billion more furniture than previously thought. This furniture was manufactured during the current year in Sweden.
c. It is discovered that businesses bought $6 billion more furniture than previously thought. This furniture was manufactured during the current year in North Carolina.
d. It is discovered that businesses bought $6 billion more furniture than previously thought. This furniture was manufactured during the current year in Sweden.
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