Firm X, a designer clothing company, buys $400 worth of silk from a silk trader and $30 worth of accessories from Firm Y. Firm X makes a dress and sells it to Macy's for $900. Macy sells the dress to a customer for $1200. How much did GDP increase because of these transactions?
Firm X, a designer clothing company, buys $400 worth of silk from a silk trader and $30 worth of accessories from Firm Y. Firm X makes a dress and sells it to Macy's for $900. Macy sells the dress to a customer for $1200. How much did GDP increase because of these transactions?
Chapter19: Measuring Economic Performance
Section: Chapter Questions
Problem 8P
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Firm X, a designer clothing company, buys $400 worth of silk from a silk trader and $30 worth of accessories from Firm Y. Firm X makes a dress and sells it to Macy's for $900. Macy sells the dress to a customer for $1200. How much did GDP increase because of these transactions?
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The chances of double counting is high in these type of activity.
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