Suppose that in 2017, geologists discover large reserves of oil under the tundra in Alaska. These new reserves have a market value estimated at $50 billion at current oil prices. Oil companies spend $1 billion to hire workers and move and position equipment to begin exploratory pumping during that same year. In the process of loading some of the oil onto tankers at a port, one company accidentally spills some of the oil into a bay and by the end of the year pays $1billion to other companies to clean it up. The oil spill kills thousands of birds, seals, and other wildlife. What was the combined effect of these events on
Introduction:
In the calculation of GDP for a particular year, the total value of goods and services purchased in the country are taken into account, which gives rise to an estimate about the growth of economic activities in a country.
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Economics Today: Macro View (Looseleaf)
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