Deck 23: 3: Sec 233 Mc the Components of Gdp

Question 1

Which of the following is not an example of a durable good?

A)a refrigerator.
B)an automobile.
C)a business suit.
D)a furnace.

Answer 1

B

Question 2

For the purpose of calculating GDP,investment is spending on

A)stocks,bonds,and other financial assets.
B)real estate and financial assets such as stocks and bonds.
C)capital equipment,inventories,and structures,including household purchases of new housing.
D)capital equipment,inventories,and structures,excluding household purchases of new housing.

Answer 2

D

Question 3

Household spending on education is included in

A)consumption,although it might be argued that it would fit better in investment.
B)investment,although it might be argued that it would fit better in consumption.
C)government spending,based on the fact that most higher-education students attend publicly-supported colleges and universities.
D)None of the above is correct;in general,household spending on services is not included in any component of GDP.

Answer 3

C

Question 4

In the equation Y = C + I + G + NX,

A)Y represents the economy's total expenditure.
B)C represents household expenditures on services and durable goods.
C)all of the variables are always positive numbers.
D)All of the above are correct.

Question 5

Which of the following is included in the consumption component of U.S.GDP?

A)purchases of staplers,paper clips,and pens by U.S.business firms
B)purchases of natural gas by U.S.households
C)purchases of newly constructed homes by U.S.households
D)All of the above are correct.

Question 6

Which of the following examples of household spending is categorized as investment rather than consumption?

A)expenditures on durable goods such as automobiles and refrigerators
B)expenditures on intangibles items such as medical care
C)expenditures on new housing
D)All of the above are correct.

Question 7

The consumption component of GDP includes spending on

A)durable goods and nondurable goods,but not spending on services.
B)durable goods and services,but not spending on nondurable goods.
C)nondurable goods and services,but not spending on durable goods.
D)durable goods,nondurable goods,and services.

Question 8

Which of the following is an example of a durable good?

A)a hair dryer.
B)a suit.
C)a pair of shoes.
D)All of the above are correct.

Question 9

GDP is equal to

A)the market value of all final goods and services produced within a country in a given period of time.
B)Y.
C)C + I + G + NX.
D)All of the above are correct.

Question 10

When economists refer to intangible items,they are referring to such things as

A)illegal goods,and the value of such items is included in GDP.
B)illegal goods,and the value of such items is excluded from GDP.
C)hair styling and dental care,and the value of such items is included in GDP.
D)hair styling and dental care,and the value of such items is excluded from GDP.

Question 11

Which of the following is included in the consumption component of GDP?

A)household purchases of appliances.
B)household purchases of medical care.
C)household purchases of food.
D)All of the above are included in the consumption component of GDP.

Question 12

What word do economists use to refer to the purchase of goods that will be used in the future to produce more goods and services?

A)capital
B)consumption
C)investment
D)costs

Question 13

Consumption consists of spending by households on goods and services,with the exception of

A)purchases of intangible services.
B)purchases of durable goods.
C)purchases of new houses.
D)spending on education.

Question 14

Household spending on education is counted in which component or subcomponent of GDP?

A)consumption of durable goods
B)consumption of nondurable goods
C)consumption of services
D)investment

Question 15

Which of the following correctly lists what is included in the consumption component of GDP?

A)household purchases of services and household purchases of nondurable goods but not any household purchases of durable goods
B)household purchases of nondurable goods and durable goods other than residential construction but not household purchases of services
C)household purchases of services,nondurable goods,and all durable goods
D)household purchases of services,nondurable goods,and durable goods other than residential construction

Question 16

All of the following are examples of a nondurable good except

A)a pencil.
B)one gallon of gasoline.
C)a queen-size bed.
D)a pair of shoes.

Question 17

Micah buys a used car for $10,000 and spends $200 on a new radio that is made in the U.S.The end result of these two transactions is

A)U.S.consumption purchases increase by $200 and U.S.GDP increases by $200.
B)U.S.consumption purchases increase by $200 and U.S.GDP increases by $10,000.
C)U.S.consumption purchases increase by $10,000 and U.S.GDP increases by $10,200.
D)U.S.consumption purchases increase by $10,200 and U.S.GDP increases by $10,200.

Question 18

Which of the following is included in the investment component of GDP?

A)households' purchases of newly constructed homes
B)net additions to firms' inventories
C)firms' purchases of capital equipment
D)All of the above are correct.

Question 19

If you buy a burger and fries at your favorite fast food restaurant,

A)then neither GDP nor consumption will be affected because you would have eaten at home had you not bought the meal at the restaurant.
B)then GDP will be higher,but consumption spending will be unchanged.
C)then GDP will be unchanged,but consumption spending will be higher.
D)then both GDP and consumption spending will be higher.

Question 20

An identity is an equation that

A)describes an equilibrium.
B)pertains to macroeconomics,not to microeconomics.
C)must be true because of how the variables in the equation are defined.
D)involves final goods,not intermediate goods.

Question 21

Which of the following is included in the investment component of GDP?

A)spending to build new houses
B)spending to build new factories
C)spending on business equipment such as welding equipment
D)All of the above are included in the investment component of GDP.

Question 22

During the current quarter,a firm produces consumer goods and adds some of those goods to its inventory rather than selling them.The value of the goods added to inventory is

A)not included in the current quarter GDP.
B)included in the current quarter GDP as investment.
C)included in the current quarter GDP as consumption.
D)included in the current quarter GDP as a statistical discrepancy.

Question 23

The value of goods added to a firm's inventory in a certain year is treated as

A)consumption,since the goods will be sold to consumers in another period.
B)intermediate goods,and so is not included in that year's GDP.
C)investment,since GDP aims to measure the value of the economy's production that year.
D)spending on durable goods,since the goods could not be inventoried unless they were durable.

Question 24

A U.S.firm produces sweatshirts in the first quarter of 2010 and adds them to its inventory.In the second quarter of 2010 the firm sells the sweatshirts to consumers.In which quarter(s)does(do)these transactions raise consumption?

A)the first and the second
B)the first but not the second
C)the second but not the first
D)neither the first nor the second

Question 25

Which of the following is included in the investment component of GDP?

A)spending on new business equipment such as power tools and spending on stocks and bonds
B)spending on new business equipment such as power tools but not spending on stocks and bonds
C)spending on stocks and bonds but not spending on new business equipment such as power tools
D)neither spending on new business equipment such as power tools nor spending on stocks and bonds

Question 26

A U.S.publisher purchases new computers that were manufactured in the U.S.This purchase by itself makes

A)a positive contribution both to investment and to GDP.
B)a positive contribution both to consumption and to GDP.
C)a positive contribution to GDP,but it does not affect investment or consumption.
D)a positive contribution to investment,but it does not affect GDP.

Question 27

The local car dealership has an increase in inventory of 100 newly produced cars in 2015.In 2016,it sells all 100 cars.Which of the following statements is correct?

A)The value of the cars in inventory will be counted as part of 2015 GDP,and the value of the cars sold in 2016 will not increase 2016 GDP.
B)The value of the cars in inventory will not affect 2015 GDP,and the value of the cars sold in 2016 will increase 2016 GDP.
C)The value of the cars in inventory will be counted as part of 2015 GDP,and the value of the cars sold in 2016 will increase 2016 GDP.
D)The value of the cars in inventory will not affect 2015 GDP,and the value of the cars sold in 2016 will not increase 2016 GDP.

Question 28

The Carters' oldest son attends Big State University.He and his parents pay all his fees and tuition.These payments count in GDP as

A)investment.
B)government spending.
C)consumption of services.
D)consumption of durable goods.

Question 29

During the third quarter of this year a firm produces consumer goods and adds some of those goods to its inventory.During the fourth quarter of this year,the firm sells the goods at a retail outlet,with the result that the value of its inventory at the end of the fourth quarter is smaller than the value of its inventory at the end of the third quarter.These actions affect which component(s)of fourth-quarter GDP?

A)they increase consumption and have no affect on investment
B)they increase consumption and decrease investment
C)they have no affect on either consumption or investment
D)they have no affect on consumption and decrease investment

Question 30

Which of the following is not included in the investment component of GDP?

A)The purchase of 100 shares of stock.
B)The purchase of a $1000 bond.
C)A firm's purchase of a used van to use for deliveries.
D)None of the above are included in the investment component of GDP.

Question 31

Which of the following is included in the investment component of GDP?

A)Elaine pays her college tuition bill.
B)John's law firm buys him a new computer.
C)Laura buys a bond that McDonald's sells to raise funds.
D)All of the above are correct.

Question 32

A Minnesota farmer buys a new tractor made in Iowa by a German company.As a result,

A)U.S.investment and GDP increase,but German GDP is unaffected.
B)U.S.investment and German GDP increase,but U.S.GDP is unaffected.
C)U.S.investment,U.S.GDP,and German GDP are unaffected because tractors are intermediate goods.
D)U.S.investment,U.S.GDP,and German GDP all increase.

Question 33

Which of the following items is the one type of household expenditure that is categorized as investment rather than consumption?

A)spending on education
B)the purchase of stocks and bonds
C)the purchase of a new house
D)the purchase of durable goods such as stoves and washing machines

Question 34

A U.S.firm produces nail guns in the first quarter of 2010 and adds them to its inventory.In the second quarter of 2010 the firm sells the nail guns to a U.S.construction company.In which quarter(s)is (are)GDP higher?

A)the first and the second
B)the first but not the second
C)the second but not the first
D)neither the first nor the second

Question 35

Consumer goods that are produced,go into inventory,and are not sold during the current period are

A)counted as intermediate goods and so are not included in current period GDP.
B)counted in current period GDP only if the firm that produced them sells them to another firm.
C)included in current period GDP as inventory investment.
D)included in current period GDP as consumption.

Question 36

A manufacturer produces 1 million televisions in the first quarter of the year.It sells 900,000 of them before the end of the first quarter,and holds the others in its warehouse.How will the 100,000 unsold televisions be treated in the GDP statistics?

A)Since the televisions eventually will be bought by consumers,they will be included as consumption in the first quarter.
B)Since the televisions were not purchased in the first quarter,they will be counted as an increase in second-quarter GDP.
C)The televisions will be counted as a change in inventory in the first quarter and so will be included in first-quarter GDP.
D)The televisions will be counted as a change in inventory in the first quarter,and when sold in the second quarter will raise second-quarter GDP.

Question 37

Consider two items that might be included in GDP: (1)the estimated rental value of owner-occupied housing and (2)purchases of newly-constructed homes.How are these two items accounted for when GDP is calculated?

A)Both item (1)and item (2)are included in the consumption component of GDP.
B)Item (1)is included in the consumption component of GDP,while item (2)is included in the investment component of GDP.
C)Item (1)is included in the investment component of GDP,while item (2)is included in the consumption component of GDP.
D)Only item (2)is included in GDP,and it is included in the investment component.

Question 38

A U.S.firm produces nail guns in the first quarter of 2010 and adds them to its inventory.In the second quarter of 2010 the firm sells the nail guns to a U.S.construction company.In which quarter(s)does(do)these transactions raise investment?

A)the first and the second
B)the first but not the second
C)the second but not the first
D)neither the first nor the second

Question 39

Which of the following is included in the investment component of GDP?

A)spending on new residential construction and spending on stocks and bonds
B)spending on new residential construction but not spending on stocks and bonds
C)spending on stocks and bonds but not spending on new residential construction
D)neither spending on stocks and bonds nor spending on new residential construction

Question 40

GA wind farm in Iowa buys a large turbine generator from a Swedish-owned factory located in Connecticut that uses workers who live in Connecticut.As a result,

A)U.S.investment,GDP,and GNP all increase by the same amount.
B)U.S.investment increases,but GDP and GNP are unaffected by the purchase.
C)U.S.investment and GDP increase by the same amount,but U.S.GNP increases by a smaller amount.
D)U.S.investment and GNP increase by the same amount,but U.S.GDP increases by a smaller amount.

Question 41

A transfer payment is a payment made by

A)consumers,but not in exchange for a tangible product.
B)firms,but not in exchange for capital equipment.
C)foreigners,but not in exchange for a domestically-produced good or service.
D)government,but not in exchange for a currently produced good or service.

Question 42

A stove is produced by a firm in 2014,added to the firm's inventory in 2014,and sold to a household in 2015.It follows that

A)the value of the good is added to the investment category of 2014 GDP,added to the consumption category of 2015 GDP,and subtracted from the investment category of 2015 GDP.
B)the value of the good is added to the investment category of 2014 GDP,added to the consumption category of 2015 GDP,and not included in the investment category of 2015 GDP.
C)the value of the good is added to the investment category of 2014 GDP,subtracted from the consumption category of 2015 GDP,and not included in the investment category of 2015 GDP.
D)the value of the good is added to the investment category of 2014 GDP,subtracted from the consumption category of 2015 GDP,and added to the investment category of 2015 GDP.

Question 43

A transfer payment is

A)a payment for moving expenses a worker receives when he or she is transferred by an employer to a new location.
B)a payment that is automatically transferred from your bank account to pay a bill or some other obligation.
C)a form of government spending that is not made in exchange for a currently produced good or service.
D)the benefit that a person receives from an expenditure by government minus the taxes that were collected by government to fund that expenditure.

Question 44

Which of the following items is counted as part of government purchases?

A)The federal government pays the salary of a Navy officer.
B)The state of Nevada pays a private firm to repair a Nevada state highway.
C)The city of Las Vegas,Nevada pays a private firm to collect garbage in that city.
D)All of the above are correct.

Question 45

Which of the following items is included in GDP?

A)the sale of stocks and bonds
B)the sale of used goods
C)the sale of services such as those performed by a doctor
D)All of the above are included in GDP.

Question 46

Transfer payments are

A)included in GDP because they represent income to individuals.
B)included in GDP because they eventually will be spent on consumption.
C)not included in GDP because they are not payments for currently produced goods or services.
D)not included in GDP because taxes will have to be raised to pay for them.

Question 47

Which of the following represents a transfer payment?

A)You transfer $1,000 from your bank account to a mutual fund.
B)The government sends your grandfather his Social Security check.
C)You make a payment to get legal documents showing you purchased a previously owned home.
D)Your employer automatically transfers $100 each month from your wages to a non-taxable medical spending account.

Question 48

Which of the following is included in government purchases?

A)unemployment benefits a state pays
B)Social Security payments the U.S.government makes
C)the services of a U.S.government attorney valued at the cost of her salary
D)All of the above are correct.

Question 49

Unemployment compensation is

A)part of GDP because it represents income.
B)part of GDP because the recipients must have worked in the past to qualify.
C)not part of GDP because it is a transfer payment.
D)not part of GDP because the payments reduce business profits.

Question 50

The U.S.government pays an economist at the U.S.Department of Commerce $100,000 in salary in 2013.The economist then retires.In 2014,the government pays him $60,000 in Social Security benefits.Which of the following is correct?

A)The 2013 payment is included in 2013 GDP as government purchases,and the 2014 payment is included in 2014 GDP as government purchases.
B)The 2013 payment is included in 2013 GDP as government purchases,but the 2014 payment is not included in 2014 GDP.
C)The 2013 payment is included in 2013 GDP as government purchases,and the 2014 payment is included in 2014 GDP as government transfer payments.
D)The 2013 payment is included in 2013 GDP as government purchases,and the 2014 payment is allocated to previous years' GDP according to the amount of work performed by the economist each year.

Question 51

To encourage formation of small businesses,the government could provide subsidies;these subsidies

A)would be included in GDP because they are part of government purchases.
B)would be included in GDP because they are part of investment expenditures.
C)would not be included in GDP because they are transfer payments.
D)would not be included in GDP because the government raises taxes to pay for them.

Question 52

Rocket Energy Drink Company buys sugar to produce energy drinks.At the end of a quarter both its inventory of sugar and its inventory of energy drinks has increased.Investment for the quarter will include

A)both the increased inventory of sugar and the increased inventory of energy drinks.
B)the increased inventory of sugar,but not the increased inventory of energy drinks.
C)the increased inventory of energy drinks,but not the increased inventory of sugar.
D)neither the increased inventory of sugar nor the increased inventory of energy drinks.

Question 53

Transfer payments

A)are payments that flow from government to households.
B)are not made in exchange for currently produced goods or services.
C)alter household income,but they do not reflect the economy's production.
D)All of the above are correct.

Question 54

Recently,the U.S.national income accounts have switched to calling government purchases

A)government spending and transfer payments.
B)transfer payments and gross investment by government.
C)government consumption expenditure and gross investment.
D)government wages,salaries,and investment expenditure.

Question 55

A good is produced by a firm in 2009,added to the firm's inventory in 2010,and sold to a household in 2010.As a result,on net,

A)2009 GDP increased and 2010 GDP decreased.
B)2009 GDP decreased and 2010 GDP increased.
C)2009 GDP did not change and 2010 GDP increased.
D)2009 GDP increased and 2010 GDP did not change.

Question 56

Government purchases include spending on goods and services by

A)the federal government,but not by state or local governments.
B)federal and state governments,but not by local governments.
C)federal,state,and local governments.
D)federal,state,and local governments,as well as household spending by employees of those governments.

Question 57

A form of government spending that is not made in exchange for a currently produced good or service is called

A)a transfer payment.
B)consumption.
C)investment.
D)None of the above is correct.

Question 58

Social Security payments are

A)included in GDP because they represent current income.
B)included in GDP because they represent potential consumption.
C)excluded from GDP because they are not private pensions.
D)excluded from GDP because they do not reflect the economy's production.

Question 59

After the terrorist attacks on September 11,2001,governments within the United States raised expenditures to increase security at airports.These purchases of goods and services are

A)not included in GDP since they do not represent production.
B)not included in GDP since the government collects taxes to pay for them.
C)included in GDP since government expenditures on goods and services are included in GDP.
D)included in GDP only to the extent that the federal government,rather than state or local governments,paid for them.

Question 60

Which of the following items is counted as part of government purchases?

A)The federal government pays $2,000 in Social Security benefits to a retired person.
B)The city of Athens,Ohio pays $10,000 to a tree-trimming firm to trim trees along city boulevards.
C)The state of Nebraska pays $1,000 to help a low-income family pay its medical bills.
D)All of the above are correct.

Question 61

The city of Ann Arbor Michigan buys a police car manufactured in Germany.In the GDP accounts this transaction is included in

A)in government expenditures and exports.
B)government expenditures and imports.
C)exports,but not government expenditures.
D)imports,but not government expenditures.

Question 62

A U.S.citizen buys a tea kettle manufactured in China by a company that is owned and operated by U.S citizens.In which of the following components of U.S.GDP is this transaction accounted for?

A)consumption and imports
B)consumption but not imports
C)imports but not consumption
D)neither consumption nor imports

Question 63

Consider the following three items of spending by the government: (i)the federal government pays a $500 unemployment benefit to an unemployed person; (ii)the federal government makes a $2,000 salary payment to a Navy lieutenant; (iii)the city of Bozeman,Montana makes a $10,000 payment to ABC Lighting Company for street lights in Bozeman.Which of these payments contributes directly to government purchases in the national income accounts?

A)only item (i)
B)only item (ii)
C)only items (i)and (ii)
D)only items (ii)and (iii)

Question 64

When an Egyptian firm purchases a cement mixer from Slovakia,

A)Egyptian investment does not change,Egyptian net exports decrease,Egyptian GDP decreases,Slovakian net exports increase,and Slovakian GDP increases.
B)Egyptian investment increases,Egyptian net exports decrease,Egyptian GDP is unaffected,Slovakian net exports increase,and Slovakian GDP increases.
C)Egyptian investment decreases,Egyptian net exports increase,Egyptian GDP is unaffected,Slovakian net exports decrease,and Slovakian GDP decreases.
D)Egyptian investment increases,Egyptian net exports do not change,Egyptian GDP increases,Slovakian net exports do not change,and Slovakian GDP is unaffected.

Question 65

When an American household purchases a bottle of Italian wine for $100,

A)U.S.consumption does not change,U.S.net exports decrease by $100,and U.S.GDP decreases by $100.
B)U.S.consumption does not change,U.S.net exports increase by $100,and U.S.GDP increases by $100.
C)U.S.consumption increases by $100,U.S.net exports decrease by $100,and U.S.GDP does not change.
D)U.S.consumption increases by $100,U.S.net exports do not change,and U.S.GDP increases by $100.

Question 66

Which of the following subcomponents of GDP can be either positive or negative?

A)inventory investment
B)exports
C)government purchases
D)All of the above are correct.

Question 67

Net exports equal

A)exports plus imports.
B)imports minus exports.
C)Y - (C + I + G).
D)Y - (C - I - G).

Question 68

A U.S.grocery chain purchases olive oil from Tunisia and sells it to U.S.consumers.In which of the following is this transaction included?

A)U.S.consumption and U.S.imports
B)U.S.consumption but not U.S.imports
C)U.S.imports but not U.S.consumption
D)neither U.S.consumption nor U.S.imports

Question 69

If a U.S.company buys an electrical generator made in Japan by a Japanese firm,and the Japanese firm uses the payment to buy stocks issued by a U.S.company then

A)U.S.exports and U.S imports increase.
B)U.S.exports but not U.S.imports increase.
C)U.S.imports but not U.S.exports increase.
D)neither U.S.exports nor U.S.imports increase.

Question 70

An American retailer purchased 500 pairs of shoes from a company in Thailand in the second quarter of 2016 but does not sell them to a consumer until the third quarter of 2016.Which of the following components of U.S.GDP is affected by this transaction in the third quarter of 2016?

A)consumption,investment and imports
B)only consumption and investment
C)only consumption and imports
D)only investment and imports

Question 71

If net exports is a negative number for a particular year,then

A)the value of firms' inventories declined over the course of the year.
B)consumption exceeded the sum of investment and government purchases during the year.
C)the value of goods sold to foreigners exceeded the value of foreign goods purchased during the year.
D)the value of foreign goods purchased exceeded the value of goods sold to foreigners during the year.

Question 72

An American soldier stationed in North Carolina receives a paycheck from the federal government for $300,which she uses to purchase a $100 MP3 player made in China by a Chinese firm and $200 for fruit and vegetables from a local farmers market.As a result,U.S.GDP increases by

A)$200.
B)$300.
C)$500.
D)$600.

Question 73

A Texas household receives a Social Security check for $1500,which it uses to purchase a $40 pair of shoes made in Thailand by a Thai firm,a $1240 television made by a Korean firm in Korea,and $220 on groceries from a local store.As a result,U.S.GDP

A)increases by $40.
B)increases by $220.
C)increases by $280.
D)increases by $1500.

Question 74

Net exports equal

A)exports plus imports.
B)exports minus imports.
C)imports minus exports.
D)GDP minus imports.

Question 75

A German citizen buys an automobile produced in the United States by a Japanese company.As a result,

A)U.S.net exports increase,U.S.GDP is unaffected,Japanese GNP increases,German net exports decrease,and German GNP and GDP are unaffected.
B)U.S.net exports and GDP increase,Japanese GNP increases,German net exports decrease,German GNP is unaffected,and German GDP decreases.
C)U.S.net exports and GDP increase,Japanese GNP increases,German net exports decrease,and German GNP and GDP are unaffected.
D)U.S.net exports and GDP are unaffected,Japanese GNP increases,and German net exports,GNP,and GDP decrease.

Question 76

When a U.S.citizen buys $500 of Chinese-made parts for a motorcycle,

A)U.S.consumption falls by $500,U.S.net exports decline by $500,and U.S.GDP declines by $1000.
B)U.S.consumption does not change,U.S.net exports decline by $500,and U.S.GDP declines by $500.
C)U.S.consumption increases by $500,U.S.net exports remain the same,and U.S.GDP increases by $500.
D)U.S.consumption increases by $500,U.S.net exports decline by $500,and U.S.GDP remains the same.

Question 77

If a U.S.citizen buys a television made in Korea by a Korean firm,then

A)U.S.net exports decrease and U.S.GDP decreases.
B)U.S.net exports are unaffected and U.S.GDP decreases.
C)U.S.net exports are unaffected and U.S.GDP is unaffected.
D)U.S.net exports decrease and U.S.GDP is unaffected.

Question 78

The U.S.Air Force pays a Turkish citizen $30,000 to work on a U.S.base in Turkey.As a result,

A)U.S.government purchases increase by $30,000;U.S.net exports decrease by $30,000;and U.S.GDP is unaffected.
B)U.S.government purchases increase by $30,000;U.S.net exports are unaffected;and U.S.GDP increases by $30,000.
C)U.S.government purchases,net exports,and GDP are unaffected.
D)U.S.government purchases are unaffected;U.S.net exports decrease by $30,000;and U.S.GDP decreases by $30,000.

Question 79

An American retailer purchased 100 pairs of shoes from a company in Mexico in the second quarter of 2016 but does not sell them to a consumer until the third quarter of 2016.In which quarter(s)does(do)the value of the shoes add to U.S.GDP?

A)the second and third quarters
B)the second quarter but not the third quarter
C)the third but not the second quarter
D)neither the second nor the third quarter

Question 80

If a U.S.citizen buys a dress made in Nepal by a Nepalese firm,then

A)U.S.consumption increases,U.S.net exports decrease,and U.S.GDP decreases.
B)U.S.consumption increases,U.S.net exports decrease,and U.S.GDP is unaffected.
C)U.S.consumption decreases,U.S.net exports increase,and U.S.GDP increases.
D)U.S.consumption decreases,U.S.net exports increase,and U.S.GDP is unaffected.