Measuring GDP (6pts): A simple economy has four industries: The agricultural industry sells $45 million in...

 

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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. What is GDP? 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. What is GDP?

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To calculate the GDP Gross Domestic Product in this economy we need to consider the value of final g... View the full answer