Levi Strauss & Co. makes the denim fabric for some of its jeans in a factory in

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Levi Strauss & Co. makes the denim fabric for some of its jeans in a factory in Greensboro, North Carolina, using cotton grown in the United States. The company then sends the denim fabric to a plant in China, where workers assemble the jeans.

a. Is the denim fabric a final good? Briefly explain.

b. Is the value of the denim fabric included in U.S. GDP? Briefly explain.

c. Does it matter in calculating GDP whether a pair of these jeans is bought in a New Yok store by either a U.S. citizen or a Canadian citizen? Briefly explain.

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Economics

ISBN: 9781292430645

8th Global Edition

Authors: R. Glenn Hubbard, Anthony P. O'Brien

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