Question
Ryan is a Canadian resident who lives with his family in Victoria, Canada, but works for a small donut cafe in Seattle, U.S., where he
Ryan is a Canadian resident who lives with his family in Victoria, Canada, but works for a small donut cafe in Seattle, U.S., where he commutes every day. On a typical day, Ryan produces 600 donuts that sell for $ 3 apiece. Of the revenue from selling the donuts, Ryan is paid $ 1,170 per day. The remaining $ 630 revenue is distributed as follows: $ 157.5 pays for inputs such as water, flour, sugar, butter, and energy, $ 315 is rent for using the facilities and interest for an initial loan to start the business, and $ 157.5 goes to salary to the manager and profit to the owner of the caf.
a) How much is the increase in U.S. GDP generated by the production of the 600 donuts?
b) How much is the increase in U.S. GNP generated by the production of the 600 donuts?
c) How much is the increase in Canada's GDP generated by the production of the 600 donuts?
d) How much is the increase in Canada's GNP generated by the production of the 600 donuts?
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