the_answer_for_HW_1_EC480[1] - the import of goods for...

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1. GNP is the value if all final goods and services produced by its factors of production and sold on the market in a given time period. It is also the basic measure of a country’s output which is calculated by adding up the market value of all expenditures on final output. The GNP accounts should include only the imports of final goods to avoid double counting. Only the import goods are sold on the market. But the exports are sold to another market, it should be counted as
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Unformatted text preview: the import of goods for other countries’ GNP. 2. I agree that import restrictions necessariy reduces a US current account deficit because higher US barriers will make it harder for others countries to export to US. The US can protect their own market, so the private saving will increase. On the other hand, the domestic investment will decrease because lower investment, therefore the government deficit decrease....
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