Question

Jordan sells $25 worth of pears to individuals at the farmers market, $30 worth of pears...

  1. Jordan sells $25 worth of pears to individuals at the farmers market, $30 worth of pears to a company that uses them to make pear cider, and $75 worth of pears to a grocery store that sells them to households. How much of his sales will be included in GDP?

  2. If I buy a computer made in France, how does that impact US and French GDP?

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Answer #1

Sol:

GDPmp = C+I+G+(X-M)

Exports increases GDP while imports decreases GDP.

Thus,GDP of France will increase and of US will decrease.

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