Option 1 -> If imports grow faster than exports, net exports (X-M) decline, reducing GDP.
Option 2 -> Rising imports relative to exports would reduce, not increase, GDP through the net exports component.
Option 3 -> Net exports (X-M) is a component of GDP, so changes in relative import/export growth affect GDP.
Option 4 -> While other GDP components could theoretically offset the impact, the direct effect of imports growing faster than exports is a decline in GDP.
Hence, Option 1: Will Fall -> GDP is calculated as C + I + G + (X - M), where C is consumption, I is investment, G is government spending, X is exports, and M is imports. When imports grow faster than exports, the net exports component (X - M) becomes increasingly negative or less positive. This directly reduces GDP, assuming other components remain constant. The faster growth of imports relative to exports creates a larger trade deficit or smaller trade surplus, which pulls down the overall GDP figure. -> correct