If no other national income variables change when ________ increase, then GDP will decrease.
A) inventories
B) imports
C) investments
D) levels of pollution

Question

Quizplus · Accepted Answer

When imports increase, it means that people and/or businesses are buying more goods and services from other countries instead of domestically produced ones. As a result, GDP (which only measures the production of goods and services within a country) will decrease. The other choices (inventories, investments, levels of pollution) may or may not affect GDP depending on the circumstances.

If No Other National Income Variables Change When ________ Increase