Question

The gross domestic product goes down when which occurs?

1) Imports increase faster than exports.
2) Consumers spend more on luxury goods.
3) There are too many unemployed workers.
4) The government spends more than it takes in.

Answer 1

The other answer's wrong, it's actually 1) Imports increase faster than exports.

Answer 2

1. Imports increase faster than exports.

Step-by-step explanation:

The Gross Domestic Product (GDP) is a measure of the value of all products and services produced in a country over a determined period of time that indicates the economic status and health of the country. When calculating the GDP we need to add the consumer spending, business investment/spending, government spending and the exports spending minus the imports. So when imports (products produced elsewhere, but sold in the country) increase faster than exports, the GDP goes down.