Answered step by step
Verified Expert Solution
Question
1 Approved Answer
5. Find the contribution to U.S GDP from the transactions listed below by The Flour Mill (US), The Bread Basket (US), Sacs for Grains (Mexico),
5. Find the contribution to U.S GDP from the transactions listed below by The Flour Mill (US), The Bread Basket (US), Sacs for Grains (Mexico), and The Cake Baker (Canada). You may use any approach (Product, Income, Expenditure), but identify what approach you use and clearly show all the calculations. Notes: You can check your answer by using a second approach. Be careful to include only economic activity in the U.S. You must show all calculations used for the approach you choose. The Flour Mill, Michigan, USA (owner is US) Wages paid to The Flour Mill Employees $12,000 Flour sacs purchased from Sacs for Grains, Mexico 3,000 Flour sold to The Bread Basket in Michigan US 15,000 Flour sold to The Cake Baker in Ontario Canada 10,000 The Bread Basket, Michigan, USA (owner is US) Wages paid to The Bread Basket Michigan Employees 6,000 Flour purchased from The Flour Mill for Michigan 15,000 Revenue from sale of bread to US buyers 27,000 The Cake Baker, Ontario, Canada (owner is Canadian) Flour purchased from The Flour Mill 10,000 Wages paid to The Cake Baker Employees 4,000 Revenue from sale of cakes to Canadian buyers 15,000 Revenue from sale of cakes to US buyers 5,000 The (Product / Income / Expenditure) Approach was used (circle); The contribution to U.S. GDP
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started