Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

An Australian wool farmer sells $8000 worth of raw wool to an Italian mill. In the same year, the Italian mill sells some processed yarn

An Australian wool farmer sells $8000 worth of raw wool to an Italian mill. In the same year, the Italian mill sells some processed yarn for $1000 to an Australian yarn shop, which then sells them to consumers in Australian for $1500. The consumers pays $200 (in addition to the yarn) to a courier service for delivery.

How do the above transactions affect Australia's GDP in that year?

Decrease Australia's GDP by $5700.

Increase Australia's GDP by $1700.

Increase Australia's GDP by $8700.

Increase Australia's GDP by $9300.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Changing Resource Problems Of The World

Authors: Ronald G Ridker

1st Edition

131735494X, 9781317354949

More Books

Students also viewed these Economics questions