Question
Recently, Pop Economist Noah Smith recently criticized the New York Times saying: Jesus Christ, New York Times. What kind of economic journalism is this? IMPORTS
Recently, Pop Economist Noah Smith recently criticized the New York Times saying: Jesus Christ, New York Times. What kind of economic journalism is this? IMPORTS DO NOT SUBTRACT FROM GDP! Imports subtract from exports but they add to consumption!! They're simply neutral for GDP!
https://twitter.com/Noahpinion/status/1519700947168993280
The tweet provoked a lot of discussion. Mark the following correct statements: a) Indeed, if an import is consumed at cost: GDP does not increase. b) Indeed, we cannot claim that GDP has fallen because M increased. c) If imports are stored at cost as inventory: GDP does not increase and I increases.
d) If imports are combined with local labor to produce more output: imports will increase GDP increasing labor
Give proper explanations
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