Question
Situation: Senior Professor challenges Young Professor to eat dead rat by agreeing to pay RM10K. After making the cost benefit analysis Young Prof agreed to
Situation:
Senior Professor challenges Young Professor to eat dead rat by agreeing to pay RM10K. After making the cost benefit analysis Young Prof agreed to eat the dead rats,
Sometime later, realizing the enormity of his financial loss, the Senior Professor offer to reciprocate to get his money back. Feeling ashamed of being the only one to eat a dead rat, Young Professor quickly agrees.
A few days later, feeling quite foolish about what happened, the Young Professor don laments: "looks like we both ate dead rats for nothing". The Senior Professor reassure him, "Yes, but remember we increased GDP by RM 20K.
The Question:
1. Did the GDP really Increase in this case?
2. How to calculate GDP based on this case?
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