Alex paid her brother Andy $50 to buy a bottle of Cherry Whiskey liquor. Andy spends $40 on the liquor and keeps the remaining $10 for himself. These events cause nominal GDP to increase by

Question

Quizplus · Accepted Answer

The nominal GDP increases by the amount spent on the liquor, which is $40, as it reflects the market value of the goods produced and sold. The $10 kept by Andy does not contribute to GDP as it is not spent on goods or services.

Alex Paid Her Brother Andy $50 to Buy a Bottle