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Suppose Oakland BMW dealership bought 1000 BMW's @25,000 each from Germany. Then these 1000 cars were sold here in the USA @$40,000 each. By how
Suppose Oakland BMW dealership bought 1000 BMW's @25,000 each from Germany. Then these 1000 cars were sold here in the USA @$40,000 each. By how much would US GDP change as a result of these transactions? Please use both Value added and expenditure method. Resolve if there is any discrepancy. (please show all the steps including the formulas)
A. Compare the production possibility frontier and Consumption possibility frontier under Autarky versus trade? ( please explain in 2-3 lines)
B. Describe how the graph would look like.
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