Macroeconomics 15th Edition by James Gwartney, Richard Stroup, Russell Sobel, David Macpherson

Exercise 10

Suppose a group of British investors fi nances the construction of a plant to manufacture skateboards in St. Louis, Missouri. How will the construction of the plant affect GDP Suppose the plant generates $100,000 in corporate profi ts this year. Will these profits contribute to GDP Why or why not