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. 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.

Definition Video Definition Overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period. Video

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