Question

During 2006 a leading auto manufacturer produced 20 million of minivans. However due to soaring gas prices the sale of mini vans becomes sluggish and by the end of 2006 only 16 million of mini vans are sold. what is the gdp of mini vans is ?

Answer 1

Answer:

$20 million are added to 2006's GDP with $16 million as consumption and $4 million as private investment.

Explanation:

GDP is the total market value of goods and services produced. Since market value = price * quantity, it means that we multiply the price times the quantity for all goods in the economy and add them up for every year that we're looking at.