Question

A Texas household receives a Social Security check for $1500, which it uses to purchase a $40 pair of shoes made in Thailand by a Thai firm, a $1240 television made by a Korean firm in Korea, and $220 on groceries from a local store. As a result, U.S. GDP increases by $40. increases by $220. increases by $280. increases by $1500.

Answer 1

Answer:

increases by $220.

Explanation:

The computation of the GDP is shown below:

Since the amount of $220 spend on groceries from a local store

And, the other amounts like $1,500, $40 and $1,240 represent the imports so this would not be included in GDP

Therefore the GDP would be increased by $220