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1. (3 methods of measuring GDP) Consider an economy with two producers: a grain producer and a bread producer. In a given year, the farmer

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1. (3 methods of measuring GDP) Consider an economy with two producers: a grain producer and a bread producer. In a given year, the farmer produces 50,000 tonnes of grain, sells 20,000 tonnes to the bread maker at a price $3 per tonne, exports 25,000 tonnes at $3 per tonne and puts the rest into the stock. The grain producer also pays $50,000 to his/her employees. The bread maker produces 50,000 pieces of bread and sells everything to domestic consumers for $2 each. Moreover, the bread producer has to cover the labour cost of $20,000. Finally, consumers additionally import 15,000 breads for $1 each, and earn profits generated by both companies. Calculate the GDP of this economy using 3 methods. Is the balancing condition for savings and investments met in this economy

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