At Westonci.ca, we connect you with experts who provide detailed answers to your most pressing questions. Start exploring now! Discover comprehensive solutions to your questions from a wide network of experts on our user-friendly platform. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform.
Sagot :
Answer:
GDP will increase by $193.
Explanation:
To determine the impact of these transactions on GDP, we need to consider the value-added at each step of the production process. GDP is calculated by summing up the value added at each stage of production.
Here's the breakdown:
Farmer:
Sells wheat to the miller for $109.
Value added by the farmer: $109 (since this is the initial production).
Miller:
Buys wheat from the farmer for $109.
Sells flour to the baker for $154.
Value added by the miller: $154 - $109 = $45.
Baker:
Buys flour from the miller for $154.
Sells bread to consumers for $193.
Value added by the baker: $193 - $154 = $39.
Now, we sum up the value added at each stage to find the total increase in GDP:
Total increase in GDP
=
Value added by farmer
+
Value added by miller
+
Value added by baker
Total increase in GDP=Value added by farmer+Value added by miller+Value added by baker
\text{Total increase in GDP} = $109 + $45 + $39 = $193
So, as a result of these transactions, GDP will increase by $193.
We appreciate your time. Please revisit us for more reliable answers to any questions you may have. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Stay curious and keep coming back to Westonci.ca for answers to all your burning questions.
