Answer to Question #264487 in Macroeconomics for udoy

Question

Let’s say, in September 2018 the Walton (Bangladesh) have manufactured 100 LED TVs

(manufacturing cost was Taka 10 million) than usually they produce in a year. But they will start

selling these TVs on July 2019. (Fiscal Year is July to June in Bangladesh)

(a) Will the cost be counted in Bangladesh’s GDP FY2018-19?

(b) Instead, if the company would sell these TVs by June 2019 with a value of Taka 15 million – what

would happen to Bangladesh’s GDP FY2018-19?

Answer 1

a) The cost would not be counted  in Bangladesh’s GDP FY2018-19.

b) If the company would sell these TVs by June 2019 with a value of Taka 15 million;

The GDP would increase by Taka (15million-10million)= Taka 5 million