Question
Help in solving the following questions. Address each question as per the guidelines given. 1.Measuring GDP (6pts): A simple economy has four industries: ? The
Help in solving the following questions. Address each question as per the guidelines given.
1.Measuring GDP (6pts): A simple economy has four industries:
? The agricultural industry sells $45 million in food products directly to households as well as $35
million to the steel industry, which turns the food into biofuel for their factories.
? The iron mining industry produces iron, all of which is sold to the steel industry. Total sales to the
steel industry are $200 million per year.
? The coke industry produces coke which is combined with iron to make steel. Total sales to the steel
industry are $45 million per year.
? The steel industry processes the iron and coke together to make steel. The steel industry sells $300
million to the auto industry to make cars per year. Assume another $50 million is sold directly to
consumers/households and companies to put up steel fencing around their properties.
? The auto industry uses steel from the steel industry as well as other inputs (that it creates on its own)
to sell $725 million in vehicles to the public.
Calculate the GDP?
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