A steel company sells some steel to a bicycle company for $150. produce a bicycle, which it

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A steel company sells some steel to a bicycle company for $150. produce a bicycle, which it sells for $250. Taken together, these two transactions contribute, what will be the effect on GDP?

a. $150 to GDP.

b. $250 to GDP

c. between $250 and $400 to GDP, depending on the profit earned by the bicycle company when it sold the bicycle.

d. $400 to GDP .

Explain why.

Posted Date: Sep 22, 2021 03:00 PM

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A steel company sells some steel to a bicycle company for $150. produce a bicycle, which it

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Expert Answer:

b 250 to GDP is the correct We can calculate this by the value added m... View the full answer

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