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6 July, 12:56

An increase in which of the following causes GDP to decrease?

A. exports

B. imports

C. Investment

D. None of the above

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Answers (1)
  1. 6 July, 13:27
    0
    B

    Step-by-step explanation:

    The GDP measures the market value of all goods and services produced in an economy (country or region) in a specific period of time. The GDP formula is:

    GDP = Consumption (C) + Investment (I) + Government expenditure (G) + (Exports - Imports) (Net exports)

    Notice that if exports increase, GDP will increase too. Also, if investment increases GDP will increase. Notice that imports have a negative sign, then if they increase, GDP will decrease.
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