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Author Question: Why should imports be excluded from gross domestic product? How is a purchase of an import recorded ... (Read 61 times)

oliviahorn72

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on: Jun 30, 2018
Why should imports be excluded from gross domestic product? How is a purchase of an import recorded in the components of GDP?
 
  What will be an ideal response?

Question 2

In a fully-funded social security program
 
  A) the young pay for the benefits of the old.
  B) the young are forced to save for their own retirement.
  C) the young have to buy bonds for the old.
  D) the young are forced to save for the retirement of the old.


Leostella20

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Reply #1 on: Jun 30, 2018
Answer to Question 1

Imports are purchases by domestic buyers of goods and services produced abroad and gross domestic product is a measure of domestic production of goods and services. Any purchase of an import is included as a positive in consumption, and then subtracted out of GDP by recording it also as an import.

Answer to Question 2

B


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