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10 August, 16:25

If an American woman purchases a pair of shoes in a local shoe store, what would happen to Consumption and GDP as a result? Consumption / GDP

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  1. 10 August, 16:39
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    Since the pair of shoes is purchased in a local shoe store by a local American citizen, therefore the Consumption increases as well as the GDP.

    Since both factors increases, we could say that the ratio Consumption/GDP would remain unchanged.
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