Question
Suppose a U.S. car maker produces 10 cars, each worth $25,000. During a recession that year, U.S. households buy only 5 cars. However, the company
Suppose a U.S. car maker produces 10 cars, each worth $25,000. During a recession that year, U.S. households buy only 5 cars. However, the company exports two more cars to Japan. How much does U.S. GDP increase by?
| a. U.S. GDP does not change at all because the car maker is not able to sell all cars | ||
| b. $125,000 | ||
| c. $175,000 | ||
| d. $250,000 |
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International Marketing And Export Management
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
8th Edition
1292016922, 978-1292016924
