Q2. Assume that a Kia automobiles dealership in Mehrauli, Gurugram transshipped 300 Kia Sonet cars from South Korea at a cost of Rs. 13 lakhs per car in September 2019. By March 31, 2020, they were able to sell 200 of these Sonet cars at a price of Rs. 16 lakhs each. The remaining Hyundai cars were sold in April 2020 at a price Rs. 14 lakhs each. How exactly will this affect the GDP in 2019-20 and 2020-21, and which components of GDP will be affected? Explain your answer through the expenditure as well as the value-added method of computing national income.

Q2. Assume that a Kia automobiles dealership in Mehrauli, Gurugram transshipped 300 Kia Sonet cars from South Korea at a cost of Rs. 13 lakhs per car in September 2019. By March 31, 2020, they were able to sell 200 of these Sonet cars at a price of Rs. 16 lakhs each. The remaining Hyundai cars were sold in April 2020 at a price Rs. 14 lakhs each. How exactly will this affect the GDP in 2019-20 and 2020-21, and which components of GDP will be affected? Explain your answer through the expenditure as well as the value-added method of computing national income.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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