Justine is an artist. In 2003, she produced 15 paintings and sold all 15. In 2004 she produced 14 paintings
and sold 11. In 2005, she produced 16 paintings and sold 18. Explain how many of Justine’s paintings
would be counted as part of gross private domestic investment in each of these three years.
5. Explain why decreases in inventories are included as a negative number in gross private domestic
6. Why are transfer payments included in personal income but not in national income? Are transfer payments
included in GDP?
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