If you buy a burger and fries at your favorite fast food restaurant

By Allen Kazadi
1 Min Read

If you buy a burger and fries at your favorite fast food restaurant:___________

A. then GDP will be higher, but consumption spending will be unchanged.
B. then both GDP and consumption spending will be higher.
C. then neither GDP nor consumption will be affected because you would have eaten at home had you not bought the meal at the restaurant.
D. then GDP will be unchanged, but consumption spending will be higher.

Answer:

A. then GDP will be higher, but consumption spending will be unchanged.

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