Question

6. Assume that a tire company sells four tires to an automobile company for $400, another company sells a compact disc player for $500, and the automobile company puts all of these items in or on a car that it sells for $20,000. In this case, the amount from these transactions that should be counted in GDP is: a. $20,000. b. $20,000 less the automobile company's profit on the car. c. $20,900. tbut ad nu $20,900 less the profits of all three companies on the items that they sold. ups svode eni 9 bn d. muhdiliups

Answer 1

6. $20000 (GDP considers value of final goods and services produced).

1. b ( because interest rate is lower that is the reason of shortage of loanable funds.)