Answer to Question #202860 in Macroeconomics for Mariza

Question

Stores in Vermont buy strawberries from Quebec. What would be the impact on the Quebec economy?

 A. Consumption, nominal GDP, and real GDP increase.
 B. Exports increase, nominal GDP increases, and there is no effect on real GDP.
 C. Exports, nominal GDP and real GDP increase.
 D. Exports increase, there is no effect on nominal GDP, real GDP increases.
 E. Imports, nominal GDP and real GDP increase.
 F. Investment, nominal GDP and real GDP increase.

Answer 1

C. Exports, nominal GDP and real GDP increase.

when Quebec exports strawberries to Vermont, the Quebec exports increase thereby increasing both the real and nominal gross domestic product.