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AnnyKZ [126]
2 years ago
12

State the following statement is True or False, and explain why. Thor who lives in Montana purchased a car produced in Japan for

$30,000. His purchase decreased GDP by $30,000.
Business
1 answer:
Likurg_2 [28]2 years ago
3 0

Answer:

false

His purchase left GDP unchanged

Consumption of non durables would increase.

Also, net export would decrease.

these effects would cancel out

Explanation:

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export

Net export = exports – imports

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