Sophie, a Canadian citizen, works in the United States but lives with her family in Canada. How does her employment impact the GDP of both countries?

Question

Quizplus · Accepted Answer

Sophie's employment in the United States contributes to the U.S. GDP, as she is producing goods or providing services within the country's borders. However, since she lives in Canada, her income is likely spent and taxed there, which also contributes to Canada's GDP. Therefore, her employment raises the U.S. GDP and the Canadian GDP is unaffected.

Sophie, a Canadian Citizen, Works in the United States but Lives