How is your purchase of a €40,000 BMW automobile that was produced entirely in Germany recorded in the UK GDP accounts?
A) Consumption increases by €40,000 and net exports decreases by €40,000.
B) Net exports increases by €40,000.
C) There is no impact because this transaction does not involve domestic production.
D) Investment increases by €40,000 and net exports increases by €40,000.
E) Net exports decreases by €40,000.
Correct Answer:
Verified
Q13: GDP is not a perfect measure of
Q37: GDP may not be a reliable indicator
Q38: Suppose the government passes a law eliminating
Q41: Describe the main components of GDP.
Q43: Suppose a person marries his or her
Q44: GDP is used as the basic measure
Q46: Real GDP is nominal GDP
A) Plus depreciation.
B)
Q47: Since it is counted as investment, why
Q127: GDP is defined as the market value
Q135: Explain why it is the case that
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents