Assume an economy in which there are two producers: a wheat producer and a bread producer. In a given year, the wheat producer grows 4 million tonnes of wh which 3.5 million tonnes are sold to the bread producer at $20 per tonne and 0.5 million tonnes are stored by the wheat producer to use as seed for next year's cr The bread producer produces and sells 300 million loaves of bread to consumers for $1.50 per loaf. Determine GDP in this economy during this year by using the product and expenditure approaches. Using the product approach, the value added by the wheat producer is $ 80 million, the value added by the bread producer is $ 380 million, and GDP in this eco is $ 460 million. Using the expenditure approach, C= $ million, I= $ million, G = $ million, NX = $ million, and GDP in this economy is $ million.

Assume an economy in which there are two producers: a wheat producer and a bread producer. In a given year, the wheat producer grows 4 million tonnes of wh which 3.5 million tonnes are sold to the bread producer at $20 per tonne and 0.5 million tonnes are stored by the wheat producer to use as seed for next year's cr The bread producer produces and sells 300 million loaves of bread to consumers for $1.50 per loaf. Determine GDP in this economy during this year by using the product and expenditure approaches. Using the product approach, the value added by the wheat producer is $ 80 million, the value added by the bread producer is $ 380 million, and GDP in this eco is $ 460 million. Using the expenditure approach, C= $ million, I= $ million, G = $ million, NX = $ million, and GDP in this economy is $ million.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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