Solved

Louis Always Knits Ten Sweaters a Year to Give as Birthday

Question 107

Multiple Choice

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; his nephews receive no gifts.What is the effect on GDP?


A) GDP increases
B) GDP decreases
C) there is no change in GDP
D) GDP increases only if the $50 sweaters are comparable to store-bought sweaters
E) GDP increases only if the $50 price is less than the cost of materials

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents