A factory in Techland could not sell 20% of its output during a certain year due to a decrease in demand for its product. Which of the following would have happened if it produced 20% less?
A) Techland’s GDP would have been higher.
B) Techland’s GDP would have been lower.
C) Techland’s trade deficit would have been less.
D) Techland’s GDP would have remained the same.
ANSWER
B
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