U.S. imports are
A) not added to U.S. GDP because they are produced abroad
B) added to U.S. GDP because they are consumed domestically
C) added to U.S. GDP because they represent an increase in inventories
D) added to U.S. GDP as government purchases because the government decides what goods may be imported
E) not added to U.S. GDP because they are intermediate goods

Question

Quizplus · Accepted Answer

Imports are subtracted from GDP calculations because they are not produced domestically, thus not contributing to the domestic economy's output.

U.S. Imports Are