Which of the following would cause the value of a nation's GDP to increase in a given year?

Choose 1 answer:
(A) An increase in volunteer work
(B) An increase in sale of illegal goods in the economy
(C) More people choose to stay at home to raise their children rather than using paid childcare
(D) Households spend more on domestic air travel
(E) An increase in the sale of used cars

Question

Which of the following would cause the value of a nation's GDP to increase in a given year?

Choose 1 answer:
(A) An increase in volunteer work
(B) An increase in sale of illegal goods in the economy
(C) More people choose to stay at home to raise their children rather than using paid childcare
(D) Households spend more on domestic air travel
(E) An increase in the sale of used cars

Accepted Answer

***D*** ∻Key Concept∻ ⚹Gross Domestic Product (GDP)⚹ ∻Explanation∻ ⚹GDP measures the total value of goods and services produced within a country's borders in a specific time period. An increase in domestic air travel spending reflects a rise in consumption of services, which is a component of GDP, thus increasing the nation's GDP.⚹◊What impact would an increase in household spending on domestic air travel have on a nation's GDP according to the expenditure approach formula $GDP = C + I + G + (X-M)$?⍭ Generate me a similar question◊

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