A wind farm in Manitoba buys a large turbine generator from a Swedish-owned factory located in Ontario and using local workers. What happens as a result?

Question

Quizplus · Accepted Answer

The purchase of the turbine generator by the wind farm represents an increase in investment in the Canadian economy. This investment will lead to an increase in GDP as the wind farm begins to generate electricity and sell it to consumers. Since the turbine generator was manufactured in Ontario using local workers, this also contributes to Canadian GDP. Therefore, both investment and GDP will increase by the same amount.

A Wind Farm in Manitoba Buys a Large Turbine Generator