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You are being interviewed for an internship position at the World Bank. To assess whether you are familiar with GDP accounts, the interviewer gives you the data in the paragraph below:

There is a single firm located in and producing (only) in country A. It pays its workers in country A $120, it pays shareholders within country A $30 of dividends and pays its shareholders in country B $20 dividends. It pays $5 of tax to the government. The firm uses $15 of imported intermediate goods. There is also a government in country A that hires teachers and pays them $40.

She then asks you to choose an approach to computing GDP and use it to calculate it to calculate country A's GDP.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M92699084
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