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Dafna1 [17]
3 years ago
8

A purchase of a French bottle of wine by a resident of Honduras would be considered an ____ when counting GDP in Honduras. As a

result, this purchase would be ____ Honduran GDP. A purchase of a box of cigars made in Honduras and sold in Canada would be considered an ____ for Honduran GDP, which would be ____ Honduran GDP.
Business
1 answer:
Misha Larkins [42]3 years ago
7 0

Answer:

import, subtract. export, added

Explanation:

The GDP equation is given by  GDP = C + I + G + (X – M) where C is consumption, I investment, G is government expenditures and M are imports.

Since the bottle of wine was produced in France it had to be imported to Honduras to be consumed, imports enters the GDP equation with a minus sign. This implies imports are subtracted from the GDP equation. For a box of Honduras cigars to be consumed in Canada they had to be exported there, so these are counted as exports with enter the GDP equation with a plus sign. So exports are added.

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