Question

You purchase a new car (produced this year) for $38,000. After six months, you sell the car for $31,500. How much does GDP rise because of these two transactions?
a. GDP rises by $38,000
b. GDP rises by $31,500
c. GDP rises by $69,500
d. GDP rises by $6,500

Answer 1

The GDP should be rise by $38,000 due to these two transactions.

The following information should be relevant:

• GDP is the Gross domestic product. It is the amount that should create value-added at the time when the goods & services are produced.
• It is the amount where the item should be firstly purchased.
• Like in the given situation, the new car should be purchased for $38,000.
• And, after six months the car is sold for $31,500.

So, the sale value does not create any value-added.

Therefore we can conclude that The GDP should be rise by $38,000 due to these two transactions.

Learn more about the GDP here: brainly.com/question/15682765