Which of the following will lead to a decrease in the GDP of a country?
A) An increase in exports
B) A decrease in imports
C) A decrease in the expenditure incurred by the government
D) An increase in the expenditure on investment

Question

Quizplus · Accepted Answer

A decrease in the expenditure incurred by the government would lead to a decrease in the GDP of a country as government spending is one of the components of GDP. An increase in exports and a decrease in imports increase the GDP by increasing the net exports component. An increase in the expenditure on investment would also increase the GDP as it contributes to the investment component of GDP.

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