1. Business
  2. Economics
  3. 1 consider two scenarios under scenario a i sell my...

Question: 1 consider two scenarios under scenario a i sell my...

Question details

1. Consider two scenarios. Under scenario A, I sell my 1991 Taurus Station Wagon to my neighbor for $600 Under scenario B, I get $600 from an auto dealer for trading in the Taurus, who later in the same year sells the Taurus to my neighbor for $1,000. What happens to GDP under each scenario? Do you think the fact that GDP is affected differently in the two scenarios is a strength or a weakness with this measure of output? Briefly explain.
Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution