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The circular flow model and GDP

Problem

In Fitlandia a dollar sign, 100, start text, space, m, i, l, l, i, o, n, end text skyscraper is constructed over two years. In year 1, dollar sign, 60, start text, space, m, i, l, l, i, o, n, end text is spent on its construction, and in year two dollar sign, 40, start text, space, m, i, l, l, i, o, n, end text is spent.
How will the construction of these skyscrapers impact Fitlandia's gross domestic product (GDP) in year 1 and year 2?
Choose 1 answer:
Choose 1 answer: