Question:

Economics question help!!! (easy 10pts)

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ok, if a guy bought shares of stock in IBM for 10,000 dollars and paid 90 dollars to his broker. How did this affect his GDP (gross domestic product)? please provide a brief explanation also. thanks!!

a. it had no impact

b. GDP increased by 90 dollars

c. GDP increased by 10,000 dollars

d. GDP increased by 9,900 dollars

e. GDP increased by 10,090 dollars

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1 ANSWERS


  1. b. GDP increased by 90 dollars

    Buying IBM shares is not included in GDP because it is just assets changes ownership (from someone to you) and it does not provide additional value (product/service). But $90 charged by broker for his/her services, thus adds value (so counted in GDP).

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