Suppose that the government purchases $50 million worth of computers from China. Which of the following GDP accounts will be affected? Consumption Investment Government Purchases Net Exports

Answer 1

Consumption would not be affected because the government is buying the computers, not consumers

Investment would not be affected either

Government purchases would obviously increase due to a purchase of goods by the government

Also, due to the fact that the goods are coming from out of the country (China), Net Exports would be affected. Since this is an import of goods, net exports would go down.