When a U.S. company purchases and imports electronic parts from China to use to produce smartphones within the United States, this purchaseincreases thenet exports by the same amount. Therefore, thecomponent of GDP while alsopurchase of electronic parts from China causesin US GDP.

Gross Domestic Product (GDP) components are the essential elements that reveal a country's economic…

When a U.S. company purchases and imports electronic parts from China to use to produce smartphones within the United States, this purchase increases the component of GDP while also net exports by the same amount. Therefore, the purchase of electronic parts from China causes in US GDP.

When a U.S. company purchases and imports electronic parts from China to use to produce smartphones within the United States, this purchase increases the component of GDP while also net exports by the same amount. Therefore, the purchase of electronic parts from China causes in US GDP.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter19: The Macroeconomic Perspective

Section: Chapter Questions

Problem 25CTQ: Cross country comparisons of GDP per capita typically use purchasing power parity equivalent...

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When a U.S. company purchases and imports electronic parts from China to use to produce smartphones within the United States, this purchase
increases the
net exports by the same amount. Therefore, the
component of GDP while also
purchase of electronic parts from China causes
in US GDP.

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