In each of the following cases, determine how much GDP and each of its components is affected (if at all).

i) Mrs. X spends Rs 2000 to buy her husband dinner at the finest restaurant in New Delhi.

ii) Riya spends Rs 18000 on a new printer to use in her printing press. The laptop was built in Japan.

iii) Rohit spends Rs 12000 on a computer to use in his accountancy firm. He obtained last year’s model on sale for a great price from a local manufacturer.

iv) ABC Motors makes Rs 2000 million worth of cars, but consumers only buy Rs 1700 million worth of them.

Answer rating: 100% (QA)

i Mrs X buys dinner at a restaurant Consumption Expenditure C increases by Rs 2000 Gross Domestic Pr... View the full answer