Now, from our class discussions I created an example that you inherited the company, --let’s called is U-- that owns the land growing the trees and you sell your cut down trees to Company V for $30,000. Company V converts your trees into logs and sell them further down the industry supply chain. Think about the impact of this transaction between Company U and Company V on increasing the GDP. Which one of the parts of the GDP formula does this $30,000 transaction increase: C, I, G, X, or I? Correctly identify which one increases GDP and why you chose that part of the GDP impacted.
Now, from our class discussions I created an example that you inherited the company, --let’s called is U-- that owns the land growing the trees and you sell your cut down trees to Company V for $30,000. Company V converts your trees into logs and sell them further down the industry supply chain. Think about the impact of this transaction between Company U and Company V on increasing the GDP. Which one of the parts of the GDP formula does this $30,000 transaction increase: C, I, G, X, or I? Correctly identify which one increases GDP and why you chose that part of the GDP impacted.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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2.Now, from our class discussions I created an example that you inherited the company, --let’s called is U-- that owns the land growing the trees and you sell your cut down trees to Company V for $30,000. Company V converts your trees into logs and sell them further down the industry supply chain. Think about the impact of this transaction between Company U and Company V on increasing the GDP. Which one of the parts of the GDP formula does this $30,000 transaction increase: C, I, G, X, or I? Correctly identify which one increases GDP and why you chose that part of the GDP impacted.
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