Question
In an open economy, trade is allowed between countries. Assume a consumer purchases $1,000 worth of furniture manufactured in China. Answer the following: a.Which component(s)
In an open economy, trade is allowed between countries. Assume a consumer purchases $1,000 worth of furniture manufactured in China. Answer the following:
a.Which component(s) of GDP are impacted by this purchase?
b.Does GDP increase, decrease or stay the same? Briefly explain.
c.Does your answer change if the company in China is a U.S. owned company?Why?
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Risk Management And Insurance
Authors: Scott E Harrington, Greg Niehaus
2nd Edition
0072339705, 9780072339703
