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4. Consider the one-good model, in which output is produced with labour and capital. Then, as a result of offshoring (e.g. domestic firms buy the
4. Consider the one-good model, in which output is produced with labour and capital. Then, as a result of offshoring (e.g. domestic firms buy the services of labour abroad electronically at the fixed wage) the following changes are possible in the domestic economy: (a) both GDP and GNI increase (b) GDP rises but GNI decreases (c) GNI rises but GDP decreases (d) both GDP and GNI decrease (e) none of the above
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