Question
Explain why the following statements is True, False, or Uncertain according to economic principles.Use diagrams where appropriate and show your calculations. It is the explanation
Explain why the following statements is True, False, or Uncertain according to economic principles.Use diagrams where appropriate and show your calculations. It is the explanation that is important.
Suppose that U&I Inc. is a Canadian company that every year sells $10B of product, $6B to domestic and $4B to foreign consumers. Yearly, it buys $1B of imported parts, pays its workers $5.5B, pays rent of $0.5B, makes a $2B interest payment, and earns profits of $1B.U&I's operations add $9B yearly toGDP whether measured using the value added, expenditure, or income approach.
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