Answer to Question #224278 in Macroeconomics for Myles

Question

A U.S.-owned automobile factory uses $100,000 worth of parts purchased from foreign countries along with U.S. inputs to produce 30 cars worth $20,000 each. Twenty of these cars are sold and 10 are left in inventory. How much did these actions add to GDP?

Answer 1

Total value of car produced minus imports $= 30(20,000)-100,000 =500,000$