[Answer] Consider the formula GDP = C+I+G+(X-M). A country is undergoing a boom in consumption of domestic and foreign luxury goods. In one year the dollar growth in imports is greater than the dollar growth in domestic consumption. Assuming nothing else has changed what happened to GDP? Exam 2

Consider the formula GDP = C+I+G+(X-M). A country is undergoing a boom in consumption of domestic and foreign luxury goods. In one year the dollar…