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How does the fact that Canadians or other foreign nationals come to America for health care tend to influence the measured share of our GDP that is devoted to health care in America? Does their spending show up in the numerator used to calculate that share. Does their income show up in the denominator
GDp stands for gross domestic product that includes income earned from foreign nationals as well when they receive service within domestic territory of the economy. When foreign nationals come to US they tend to purchase medical care which also gets count as product sale from the sector that increases the total GDP.
As such increment takes place in total GDP then denominator value which is total GDP value increases. However if the health care services provided to Americans only has to be calclated then numerator will not change but when total saher of GDP contributed by the health care sector has to be find out then obviously with the same figure the numerator will also gets increased which implies increase in share.
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