Louis always knits ten sweaters a year to give as birthday gifts to his nephews.One year, instead of giving the sweaters as gifts, he sells them to a local store for $50 each, and his nephews receive no gifts.What is the effect on GDP?
A) GDP increases.
B) GDP decreases.
C) GDP does not change.
D) GDP increases only if the $50 sweaters are comparable to store-bought sweaters.
Correct Answer:
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