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A local farmer purchases $400 of supplies to grow potatoes which are then sold for $1000 to grocery stores and restaurants ($500 each). The grocery
A local farmer purchases $400 of supplies to grow potatoes which are then sold for $1000 to grocery stores and restaurants ($500 each). The grocery stores then sell their potatoes to consumers for $700, while the restaurants sell theirs (as part of menu items) for $1000 a) What is the GDP contribution of these transactions? b) How much value added is contributed by each firm
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