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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.
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