The table below shows the values of various economic variables of a country during a particular year.

-Refer to the table above.If imports falls to $45,000 in the next year,GDP will ________,all other variables remaining unchanged.
A) increase by $5,000
B) increase by $10,000
C) fall by $5,000
D) fall by $10,000

Question

The table below shows the values of various economic variables of a country during a particular year.
 
-Refer to the table above.If imports falls to $45,000 in the next year,GDP will ________,all other variables remaining unchanged.
A) increase by $5,000 
B) increase by $10,000 
C) fall by $5,000 
D) fall by $10,000

Quizplus · Accepted Answer

When imports decrease, it means the country is spending less on foreign goods. This reduction in spending on imports effectively increases the GDP, assuming all other factors remain constant. In this case, a decrease in imports from $50,000 to $45,000 (a $5,000 reduction) would increase the GDP by $5,000.

The Table Below Shows the Values of Various Economic Variables