In which of the following situations would GDP not change?
A) As domestic consumers buy fewer tobacco products, tobacco manufacturers instead sell their products, at the same price, to foreign buyers.
B) Domestic consumers begin to buy less imported wine, and instead spend just as much money on domestically produced wine.
C) Without reducing the number of automobiles sold, domestic automobile producers decide to reduce the number of automobiles they produce, rather than producing cars that would end up as unsold inventory.
D) More and more domestic consumers opt to build a new home, rather than spending the same money on an already existing home.
Correct Answer:
Verified
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