Suppose the Federal Food and Drug administration decides to buy some lab equipment from a French company for $30 million. How will this be accounted for in GDP? It will show up as an import and so will reduce GDP by $30 million. It will show in two places, imports and government expenditures, but these will net out so that the total contribution to GDP will be zero. It will show up as part of government spending and so will increase GDP by $30 million It will not be accounted for in GDP because lab equipment is not part of a good or service