12. A local farmer purchases $400 of supplies to grow potatoes which are then sold for $1000 to grocery stores and restaurants ($500 each). The grocery stores then sell their potatoes to consumers for $700, while the restaurants sell theirs (as part of menu items) for $1000.

a) What is the GDP contribution of these transactions?

b) How much value added is contributed by each firm?

Answer rating: 100% (QA)

GDP Contribution and Value Added a GDP Contribution There are two ways to approach this Method 1 Considering Final Consumption Only GDP measures the f... View the full answer