Consider an economy, which produces three goods: cotton, cloth and shirts. A farm grows cotton is grown using just capital and labor. A textile mill using its capital and labor weaves the cotton into cloth. A garment factory using its capital and labor sews the cloth into shirts.

The farm pays its workers $10 million and produces cotton which it sells to the textile mill for $15 million. The mill pays its workers $12 million and using the cotton produces cloth, which it sells, to the garment factory for $30 million. The factory pays its workers $20 million and using the cloth produces shirts which it sells to consumers for $65 million.

1. a)Using the 'sum of final spending approach' what is GDP for this economy?
2. b)What is the value added by the farm, the textile mill and the garment factory? Using the 'value added'approach, what is GDP?
3. c)What are profits earned in the farm, textile mill and garment factory? Using the sum of income approach what is GDP?