Suppose that a firm spends $200,000 to build a factory in 2012 that is expected to have a life of 10 years. As a result, GDP in 2012 will increase by:
a. $20,000
b. $200,000
c. You need to know the selling price of the factory to answer this question.
d. It depends upon the tax law regarding depreciation.
B
Economics
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