Question
Kathy, a local clothing manufacturer in HK, produced $1000 worth of T-shirt in 2018. The shirts were not sold in 2018, they were kept as
Kathy, a local clothing manufacturer in HK, produced $1000 worth of T-shirt in 2018.
The shirts were not sold in 2018, they were kept as inventories by Kathy in 2018.
In 2019, all the $1000 worth of T-shirts were sold to the households of HK.
Q1) How should the GDP of HK be affected in 2018 and 2019 respectively?
Q2)
a) Based on the expenditure approach, which items (C, I,G, NX) will be affected in 2018 and 2019 and how?
b) Based on the answer of part a) (i.e., based on the expenditure approach), how will the overall GDP of HK (which is C+I+G+NX) in 2018 and 2019 be affected?
I'm not sure how to handle these..
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