A U.S.citizen buys a tea kettle manufactured in China by a company that is owned and operated by U.S citizens.In which of the following components of U.S.GDP is this transaction accounted for?

Question

Quizplus · Accepted Answer

The purchase of the tea kettle by the U.S citizen is a consumption expenditure, which is a component of U.S. GDP. The tea kettle was manufactured in China and hence, it is an imported good. Therefore, this transaction is accounted for in the consumption and imports component of U.S. GDP.

A UScitizen Buys a Tea Kettle Manufactured in China by a a Company