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Economic Questions of GDP

發問:

Identify the immediate effect for each of the following circumstances on Hong Kong’s GDP and its components. (9 marks) i Mr and Mrs Leung receive a welfare check from government. ii Stephen purchases a Japanese digital camera. iii Mary buys domestically produced bread for breakfast.

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i) It has no effect on the GDP as it is only a TRANSFER PAYMENT. ii) Hong Kong's imports will increase as HK people purchased overseas (Japanese) goods, thus, GDP decrease. iii) GDP will increase as domestic consumption rises.

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