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

Quizplus · Accepted Answer

When you buy a burger and fries, it is considered a consumption expenditure, which contributes to GDP. Therefore, both GDP and consumption spending increase.

If You Buy a Burger and Fries at Your Favorite