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The Owner of an Oil Well in Alberta Sells 1,000

Question 28

Multiple Choice

The owner of an oil well in Alberta sells 1,000 barrels of oil to a refinery in the U.S.for $12,000.This transaction


A) increases GDP by $12,000.
B) has no effect on GDP because the refinery is in the U.S.
C) decreases GDP because oil reserves have fallen by 1,000 barrels.
D) has no effect on GDP because this is the sale of an intermediate product.

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