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i. Adam (who lives in England) shears wool from his sheep and sells it to Karl (who lives in Germany) for $1400
ii. Karl uses the wool purchased from Adam to weave into cloth that he then sells to Leon (who also lives in Germany) for $1600. i
ii. Leon sells the wool cloth to Alfred (who lives in England) for $2000. iv. Alfred then tailors a suit for John (who lives in England) for $5000. Suppose that these are the only transactions in the two countries, and that they all take place in the year 2017. The GDPs of the United Kingdom and Germany (measured in dollars), respectively, are:

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aaregbe

Answer:

$4400 and $600

Explanation:

Adam in England sold wool to Karl in Germany for $1400. Lean in Germany sold wool cloth to Alfred in England for $2000. Alfred then made a suit for John in England for $5000. The GDP of UK is $1400 - $2000 + $5000 = $4400.

Similarly, Adam in England sold wool for $1400 to Karl in Germany. Karl sold a cloth to Leon in Germany for $1600. Leon sold it to Alfred in England for $2000. The GDP of Germany is -$1400 + $2000 = $600

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