Brendan buys a used car in April 2020 from his neighbor for $20,000. After one month, he loses his job and decides to sell the c

Question

2 years ago

7

Brendan buys a used car in April 2020 from his neighbor for $20,000. After one month, he loses his job and decides to sell the c

ar to get some cash. He sells the car for $22,000 to a car dealer. The dealer fixes a few things here and there and sells the car for $27,000 in July 2020. Because of these transactions, the 2020 nominal GDP increases by ______ dollars.

Business

1 answer:

zubka84 [21] · Answer 1 · 2022-09-10T18:34:40+03:00

Answer:

the increase in nominal GDP is $29,000

Explanation:

The computation of increase in nominal GDP is as follows:

= Selling value of car + difference

= $22,000 + ($27,000 - $20,000)

= $22,000 + $7,000

= $29,000

hence, the increase in nominal GDP is $29,000

We simply added the selling value and the difference