Martin, a u. s. citizen, travels to mexico and buys a newly manufactured motorcycle made there. his purchase is included in:
o both mexican gdp and u. s. gdp.
o mexican gdp, but it is not included in u. s. gdp.
o u. s. gdp, but it is not included in mexican gdp.
o neither mexican gdp nor u. s. gdp.

The correct answer is letter "B": Mexican GDP, but it is not included in U.S. GDP.

Explanation:

The Gross Domestic Product or GDP is the overall market value of all the goods and services a country produces. The GDP measures the size of an economy and a country's growth. A nation's GDP is determined with the following formula:

GDP = C + G + I + NX

Where:

C = private consumption or consumer spending

G = government spending

I = businesses' capital spending

NX = Net exports (exports - imports)

In that case, as Martin purchases the motorcycle in Mexico, the purchase will be part of the consumer spending of Mexico's GDP, not the U.S.

answerdemographic;