In which spending category would you enter the following transaction if you were trying to calculate U.S. GDP? "People in France flock to see the latest Brad Pitt movie that was produced in Hollywood."

Question

Quizplus · Accepted Answer

This transaction involves people in France spending money on a product produced in the U.S. Therefore, it would be considered a component of net exports, which measures the value of all exports minus the value of all imports in the economy.

In Which Spending Category Would You Enter the Following Transaction