Question
Calculate GDP for the economy described below: A simple economy has a few industries: The Corn industry sells 450 million USD in food products directly
Calculate GDP for the economy described below:
A simple economy has a few industries:
The Corn industry sells 450 million USD in food products directly to households as well as 700 million USD to the energy industry, which turns the food into biofuels.
The iron mining industry produces iron, all of which is sold to the steel industry. Total sales to the steel industry are 200 million USD per year.
The coke industry produces coke (carbon) which is combined with iron to make steel. Total sales to the steel industry are 55 million USD per year.
The steel industry processes the iron and coke together to make steel. The steel industry sells 300 million USD to the auto industry to make cars per year.
The auto industry uses steel from the steel industry as well as other inputs (that it creates on its own) to sell 950 million USD in vehicles to the public.
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