Question

If the price of a banana is twice the price of an apple, then the sale of a banana contributes twice as much to GDP as the sale of an apple. Group of answer choices True False

Answer 1

Yes this statement is true.

Explanation:

The sale of banana will add the twice contribution in the GDP as because the price is double and the sell of every single unit in the market in comparison of apple is able to add more currency in the economy than a sell of every single unit of apple.

The higher price may affect the sale as people will move to the other alternative but how much sell of banana will take place will able to add more money in the market as compared to apple.