A farmer grows wheat, which she sells to a miller for $100. The miller turns the wheat into flour, which she sells to a baker for $150. The baker turns the wheat into bread, which she sells to consumers for $180. Consumers eat the bread. Calculate GDP using Valued Added Approach, Expenditure approach, Income Approach.
A farmer grows wheat, which she sells to a miller for $100. The miller turns the wheat into flour, which she sells to a baker for $150. The baker turns the wheat into bread, which she sells to consumers for $180. Consumers eat the bread. Calculate GDP using Valued Added Approach, Expenditure approach, Income Approach.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A farmer grows wheat, which she sells to a miller for
$100. The miller turns the wheat into flour, which she
sells to a baker for $150. The baker turns the wheat into bread, which she sells to consumers for $180. Consumers eat the bread. Calculate GDP using Valued Added Approach, Expenditure approach, Income Approach.
Thanks in advanced.
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