An American buys a pair of shoes made in Italy.How do the U.S. national income accounts treatthe transaction?a. Net exports and GDP both rise.b. Net exports and GDP both fall.c. Net exports fall, while GDP does notchange.d. Net exports do not change, while GDPrises.
An American buys a pair of shoes made in Italy.How do the U.S. national income accounts treatthe transaction?a. Net exports and GDP both rise.b. Net exports and GDP both fall.c. Net exports fall, while GDP does notchange.d. Net exports do not change, while GDPrises.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter15: Measuring A Nation's Income
Section: Chapter Questions
Problem 4CQQ
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Question
An American buys a pair of shoes made in Italy.
How do the U.S.
the transaction?
a. Net exports and
b. Net exports and GDP both fall.
c. Net exports fall, while GDP does not
change.
d. Net exports do not change, while GDP
rises.
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