If a machine part was made in another country but bought by a US firm would it be part of our GDP or CPI?
It would be an investment by a US firm but the machine part wasn't made in the US so wouldn't it NOT be part of the GDP because GDP only meauses what is made within the countrys borders? And since CPI meausers what is bought by consumers wouldn't it not be part of CPI either because it was bought by a firm?
- OiyLv 68 months ago
No, the imports must be subtracted from GDP.You're right about CPI. But there is a correlation between PPI (producer price index and CPI as well.