Which of the following will lead to a decrease in the GDP of a country,all other variables remaining unchanged?
A) An increase in exports
B) An increase in imports
C) An increase in the expenditure on consumption
D) An increase in the expenditure on investment

Question

Quizplus · Accepted Answer

An increase in imports means that the country is spending more on goods and services produced outside of the country, which would not be counted in the country's GDP. Therefore, this would lead to a decrease in the country's GDP. Alternatively, the other choices would lead to an increase in GDP as they all involve an increase in spending within the country.

Which of the Following Will Lead to a Decrease in the GDP