Consider the following transactions of a company that produces computers. It sells $2 million worth of computers to the federal government. It sells $3 million worth of computers to households and sells $1 million worth of computers to local businesses. The company pays its workers $2.5 million and it pays $1.5 million for the parts to make the computers. It also just built a new production plant for $6 million. a) How much does GDP increase because of these transactions? b) How much does investment increase because of these transactions?

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