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"If you pay $10,000 Canadian dollars for a used truck for your business, then the aggregate...

"If you pay $10,000 Canadian dollars for a used truck for your business, then the aggregate investment of the economy is increasing by $10,000 Canadian Dollars" Is this statement True or False? Justify your answer.

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Answer #1

No. Because this is a resale. Used goods are not taken into account for calculating GDP because the value of the truck should have been included in the year of its' manufacture.

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