How the prices of some imports increase

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Reference no: EM13187011

For the U.S. perspective, imports are the goods produced by foreigners, imported to the U.S., and consumed by Americans. Exports are the goods produced by Americans, exported to other countries, and consumed by foreigners. U.S. GDP does not include imports because they are not produced in the U.S. However, they will be included in the market basket because they are consumed by Americans. At the same time, exports are included in GDP because they are produced in the U.S., but they will not be part of the market basket for Americans. Then which of the following is most likely to be true if the prices of some imports increase?

Reference no: EM13187011

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