Question

Question 7 3 pts So many people comment on how stylish Sam's cat looks in that sweater she knitted with $7 worth of yarn that Sam decides to make cat sweaters and sell them on Etsy. She makes 200 sweaters and sells them for $10 each. By how much does GDP increase? $800 $1,300 $2.000 $0 Next > < Previous

Answer 1

Correct option is (3).

GDP will increase by the consumption expenditure equal to sale value of sweaters.

Increase in GDP = 200 x $10 = $2,000