Determining the increase in the gdp and ndp, Microeconomics

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Determining the increase in the gdp and ndp

Problem: Assume a closed economy and consider gross domestic product (GDP) and net domestic product (N DP). At the beginning of 2010, firms have a capital stock of $500 million. Assume that firms purchase $200 million worth of new plant and equipment at the end of 2010. Assume a depreciation rate of 10%. As a result,

A. GDP increases by

B. NDP increases by

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