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5. An alternative way to calculate the GDP is to compute the value of total income of an economy (known as the income approach). Thus

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5. An alternative way to calculate the GDP is to compute the value of total income of an economy (known as the income approach). Thus the formula would be: GDP - wages + interest + rear + profit Suppose an owner of a rm hires his son as a manager and pays him $X a month. But his son is unproductive at all. Now the owner claims that despite the fact that the rm's output remains unchanged, GDP would still increase by $X by the income approach. Is his argument true or false? Explain

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