A Texas household receives a Social Security check for $1500, which it uses to purchase a $40 pair of shoes made in Thailand by a Thai firm, a $1240 television made by a Korean firm in Korea, and $220 on groceries from a local store.


As a result, U.S. GDP :


a. increases by $40.


b. increases by $220.


c. increases by $280.


d. increases by $1500.