The value of Canadian imports is:
A)added to exports when calculating GDP because imports reflect spending by Canadians.
B)subtracted from exports when calculating GDP because imports do not entail spending by Canadians.
C)subtracted from exports when calculating GDP because imports do not entail production in Canada.
D)added when calculating GDP because imports do not entail production in Canada.

Question

Quizplus · Accepted Answer

In calculating GDP, imports are subtracted from exports because imports do not entail production in Canada. GDP measures the value of goods and services produced within a country's borders, and imported goods do not contribute to that production. Therefore, they are not included in the calculation of GDP.

The Value of Canadian Imports Is