Which of the following will lead to an increase in the GDP of a country,all other variables remaining unchanged?
A) An increase in imports
B) An increase in consumption expenditure
C) A fall in the expenditure on investment goods
D) A fall in the expenditure incurred by the government

Question

Quizplus · Accepted Answer

An increase in consumption expenditure will lead to an increase in the demand for goods and services, which in turn will increase the production and hence the GDP of a country. The other options would result in a decrease in GDP, as imports are not a part of domestic production, and a fall in investment and government expenditure will decrease the production of goods and services in the economy.

Which of the Following Will Lead to an Increase in the GDP