Which of the following would increase GDP?
A)The state of Florida buys paper from a German paper mill.
B)A German buys stock in Citibank.
C)Honda produces cars in Ohio.
D)An American buys art on a trip to Japan.

Question

Quizplus · Accepted Answer

Honda producing cars in Ohio would increase GDP as it represents domestic production, which is a component of GDP.

Answer: D
 An American buying art on a trip to Japan would increase GDP as the purchase is made by a domestic consumer, regardless of where the product is produced. This represents consumption, which is also a component of GDP.

Therefore, the answer is C and D.

Which of the Following Would Increase GDP