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The retail company Levi Strauss sells 1,000 jeans for a total value of $100,000 to Macys. To produce these jeans, Levis bought $40,000 in materials
The retail company Levi Strauss sells 1,000 jeans for a total value of $100,000 to Macys. To produce these jeans, Levis bought $40,000 in materials from their suppliers and spent $10,000 in wages. Macys sells the jeans for $120 each (assume Macys has no wage or other costs). Levis only sold 50% of its inventory, which means they produced 2,000 jeans that year but stored 1,000. Compute the effect on GDP. (production, income & expense GDP accounting)
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