In which spending category would you enter the following transaction if you were trying to calculate U.S. GDP? "People in France flock to see the latest Brad Pitt movie that was produced in Hollywood."

Question

Quizplus · Accepted Answer

The transaction involves people in France purchasing a good (the Brad Pitt movie) that was produced in the United States. This counts as a U.S. export and would fall under the category of net exports in GDP calculation.

In Which Spending Category Would You Enter the Following Transaction