A Texas household receives a Social Security check for $500, which it uses to purchase a $460 television made in Korea by a Korean firm and a $40 dinner at a local restaurant. As a result, U.S. GDP

Question

Quizplus · Accepted Answer

U.S. GDP increases by $40 because the dinner at the local restaurant is a domestic service, contributing to the GDP. The television purchase does not affect U.S. GDP as it is an import.

A Texas Household Receives a Social Security Check for $500