Question

Please explain if the following statement is true or false: 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. Justify your answer.

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Answer #1

Ans: False

Explanation:

This transaction is a second hand good transaction. It can not be included in the current year GDP calculation. This transaction was already included in the GDP for the year in which this truck was purchased.

Thus, the statement is false.

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