If a company produces $30 million worth of pottery, 30 percent of which is sold on the domestic market and 70% which is exported overseas, then GDP…

Q2. If a company produces $30 million worth of pottery, 30 percent of which is sold on the domestic market and 70% which is exported overseas, then GDP

a. Increases by $30 million.

b. Increases by $9 million (30% of $30 million)

c. decreases by $12 million

d. Does not change

e. None of the above.

Please explain the reason.

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