Consumption consists of expenditures by individuals on goods and services, such as the new video camera made in the United States that Yvette buys and the BMW that Yvette buys (see the imports explanation in this problem as well).

Investment consists of spending on capital goods, household purchases of new housing, and (net) additions to inventories. Because computers are part of the capital stock of Sean's company, upgrading those computers is considered investment spending.

Government purchases consist of any purchase by a state, local, or federal government. Therefore, when the Federal Aviation Administration expands the runways at Philadelphia International Airport, that is considered part of government purchases.

A product’s inclusion in one category does not necessarily imply that it is excluded from other categories. When a good is sent across national boundaries or when a service is provided by a company in one country for a company in another country, the value of that good or service is included in the exports category for the country in which the good or service originated and in the imports category for the country that receives the good or service. For example, when Yvette buys a new BMW, the value of the BMW is added to the exports category for Germany and the imports category for the United States. Furthermore, because the BMW is bought in the United States, it is also included in the consumption category, as mentioned previously. (Note: The net effect on U.S. GDP is the value added by the U.S. retailer.)

On the other hand, when Yvette's father in Sweden orders a bottle of Vermont maple syrup from the producer's website, the value of the bottle of syrup is added to the exports category for the United States and the imports and consumption categories for Sweden.