Imagine a two-industry economy. Industry A employs 10 workers each paid $50 pr year to produce an intermediate good worth $1100 per year and uses $100 of its own output as an input (think of seed corn). Industry B produces $4000 per year of a consumption good, using $1000 in materials purchased from Industry A and 20 workers, each paid $50 per year. Calculate the GDP by 

(i) Measuring the value of final output 

(ii) Measuring the total value-added.

Answer rating: 100% (QA)

ANSWER Solution1 GDP by the value of final output Output produced by Ind... View the full answer