An American soldier stationed in North Carolina receives a paycheck from the federal government for $300,which she uses to purchase a $100 MP3 player made in China by a Chinese firm and $200 for fruit and vegetables from a local farmers market.As a result,U.S.GDP increases by

Question

Quizplus · Accepted Answer

U.S. GDP increases by $200 because only the purchase of fruit and vegetables from the local farmers market contributes to domestic production. The MP3 player is an import and does not add to U.S. GDP.

An American Soldier Stationed in North Carolina Receives a Paycheck