Suppose that furniture production encompasses the following stages: Stage 1: Trees are sold to lumber company.............................................$ 6,000
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Suppose that furniture production encompasses the following stages:
Stage 1: Trees are sold to lumber company.............................................$ 6,000
Stage 2: Lumber is sold to furniture company........................................$19,000
Stage 3: Furniture company sells furniture to retail store.....................$24,000
Stage 4: Furniture store sells furniture to consumer.............................$52,000
(a) What is the value added at each stage?
(b) How much does this output contribute to GDP?
(c) How would answer (b) change if the lumber were imported from Canada?
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Related Book For
The Macro Economy Today
ISBN: 978-1259291821
14th edition
Authors: Bradley R. Schiller, Karen Gebhardt
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