Consider GDP calculated as expenditures. GDP would increase if
A) imports decreased.
B) consumption decreased.
C) exports decreased.
D) investment decreased.
E) government spending decreased.

Question

Quizplus · Accepted Answer

GDP calculated as expenditures includes the following components: consumption, investment, government spending, and net exports (exports minus imports). Therefore, if imports decrease, then net exports will increase, leading to an increase in GDP. Therefore, A is the correct choice as it will result in an increase in GDP. The other choices, B, C, D, and E, will all result in a decrease in GDP.

Consider GDP Calculated as Expenditures