Ask Question
9 July, 07:17

Amy has a card shop. She receives a shipment of Valentine's Day cards in December 2011 made by a card manufacture in that month. Amy pays the wholesale distributor of the cards a total of $500. In February 2012, she sold all the cards for a total of $800. What are the contributions of these transactions to GDP in 2011 and 2012?

+3
Answers (1)
  1. 9 July, 09:04
    0
    The contributions of these transactions is a reduction to GDP by $500 in 2011 and an increase in GDP by $800 in 2012.

    Explanation:

    GDP is the abbreviation for gross domestic product which is the monetary value of all finished products (goods and services) made within a country during a specific period (usually a year). In the determination of a country's GDP, imports are subtracted while exports or sales are added.

    Therefore considering that Amy received a shipment of Valentine's Day cards in December 2011 paying a total of $500 and sold all the cards for a total of $800 in February 2012, the contributions of these transactions is a reduction to GDP by $500 in 2011 and an increase in GDP by $800 in 2012.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Amy has a card shop. She receives a shipment of Valentine's Day cards in December 2011 made by a card manufacture in that month. Amy pays ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers