An American buys a pair of shoes made in Italy. How do the U.S. national income accounts

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An American buys a pair of shoes made in Italy.

How do the U.S. national income accounts treat the transaction?

a. Net exports and GDP both rise.

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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Essentials Of Economics

ISBN: 9780357723166

10th Edition

Authors: N. Gregory Mankiw

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Question Posted: Feb 26, 2024 03:01 AM

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An American buys a pair of shoes made in Italy. How do the U.S. national income accounts

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The correct answer is c Net exports fall while GDP does not change When a...View the full answer

Essentials Of Economics

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