Tim, a citizen of the United States living in Virginia, buys a computer that was made in South Korea by a Japanese firm. This transaction would affect the GDP of the United States in which way?

Question

Quizplus · Accepted Answer

The purchase of the computer would be counted as an import in the United States, which would decrease net exports. However, since the computer was purchased by a US citizen, it would also count as consumption, which would offset the decrease in net exports and result in an overall unaffected GDP.

Tim, a Citizen of the United States Living in Virginia