Part of a bridge built by the government of Ritzland collapsed in the same year it was constructed.If the total cost of building the bridge was $4 million,which of the following will happen in this scenario,everything else remaining unchanged?
A) Ritzland's GDP will decrease by $4 million.
B) Ritzland's GDP will increase by $4 million.
C) Ritzland's trade deficit will increase by less than $4 million.
D) Ritzland's trade surplus will increase by more than $4 million.

Question

Quizplus · Accepted Answer

The construction of the bridge, despite its collapse, contributes to the GDP through government spending on infrastructure, thus increasing Ritzland's GDP by the amount spent on the construction.

Part of a Bridge Built by the Government of Ritzland