In calculating Canadian GDP, imports are subtracted from aggregate spending because
A) some consumption spending is on imports.
B) some business investment spending is on imports.
C) some government spending is on imports.
D) all of the above are true.
E) none of the above are true.

Question

Quizplus · Accepted Answer

Imports are subtracted in GDP calculations to avoid counting expenditures on goods and services that were not produced domestically. This includes consumption, business investment, and government spending on imported goods and services.

In Calculating Canadian GDP, Imports Are Subtracted from Aggregate Spending