On Aug 7, 2011, at 2:12 PM, SA wrote:
> How large is the induced growth in GDP from higher imports? The retail price is often more than twice the wholesale price paid by the importer. The local value added to imports could thus easily equal their value. This implies that an increase in imports of consumer goods equivalent to 10% of GDP could generate an increase in measured GDP of about 10% as well.
What happened to the deduction of imports from GDP (Y = C + I + G + X - M)?