The owner of an oil well in Texas sells 500 barrels of oil to a refinery in Mexico for $10,000. This transactionSelect one:O a. has no effect on Gross Domestic Product (GDP) because this is the sale of an intermediate product.O b. has no effect on Gross Domestic Product (GDP) because the refinery is in Mexico.O C. will increase Gross Domestic Product (GDP) by $10,000.d. decreases Gross Domestic Product (GDP) because oil reserves have fallen by 500 barrels.

The gross domestic product of an economy is the aggregate value of all final goods and services…

The owner of an oil well in Texas sells 500 barrels of oil to a refinery in Mexico for $10,000. This transaction Select one: a. has no effect on Gross Domestic Product (GDP) because this is the sale of an intermediate product. b. has no effect on Gross Domestic Product (GDP) because the refinery is in Mexico. C. will increase Gross Domestic Product (GDP) by $10,000. O d. decreases Gross Domestic Product (GDP) because oil reserves have fallen by 500 barrels.

The owner of an oil well in Texas sells 500 barrels of oil to a refinery in Mexico for $10,000. This transaction Select one: a. has no effect on Gross Domestic Product (GDP) because this is the sale of an intermediate product. b. has no effect on Gross Domestic Product (GDP) because the refinery is in Mexico. C. will increase Gross Domestic Product (GDP) by $10,000. O d. decreases Gross Domestic Product (GDP) because oil reserves have fallen by 500 barrels.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Production And Growth

Section: Chapter Questions

Problem 5CQQ

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