An automobile manufacturing plant opens in Alabama, and its owner, all of the workers, and all raw materials are from Japan. How would the purchase of an automobile from this plant change U.S. GDP and GNP?
a. It would increase GNP and GDP.
b. It would increase GNP and leave GDP unchanged.
c. It would increase GDP and leave GNP unchanged.
d. It would leave both GDP and GNP unchanged.
C
Economics
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Some policymakers claim that raising the minimum wage leads to higher employee morale and productivity. In this sense, an increased minimum wage would be operating like
A) an equilibrium real wage. B) an efficiency wage. C) a full employment wage. D) a sticky wage.
Economics
The proposition that changes in the money supply have no long-run effect on real variables is known as the ________
A) classical dichotomy B) quantity theory of money C) neutrality of money D) Fisher effect E) none of the above
Economics