2. A farmer grows a bushel of wheat and sells it to a miller for $1. The...

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2. A farmer grows a bushel of wheat and sells it to a miller for

$1. The miller turns the wheat into flour and then sells the flour to a baker for $3. The baker uses the flour to make bread and sells the bread to an engineer for $6. The engineer eats the bread. What is the value added by each person? What is the bread’s contribution to GDP?

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Macroeconomics

ISBN: 9781319263904

11th Edition

Authors: N. Gregory Mankiw

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