In an economy, firm 1 grows wheat, firm 2 produces bread using the wheat, and firm...

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In an economy, firm 1 grows wheat, firm 2 produces bread using the wheat, and firm 3 produces hamburger using the bread. The following table presents revenues and expenses of the firms. Firm 1 (wheat) Firm 2 (bread) Firm 3 (hamburger) Revenue from sales 150 Revenue from sales 300 Revenue from sales 500 Sales tax 30 Sales tax 50 Wages 90 Wages 60 Wages 80 Wheat purchases 150 Bread purchases 300 Profit 60 Profit 60 Profit 70 Depreciation 20 Depreciation 20 (a) Calculate GDP from the production approach. Also, find the value added of each of the three firms. (b) Calculate GDP from the income approach. In an economy, firm 1 grows wheat, firm 2 produces bread using the wheat, and firm 3 produces hamburger using the bread. The following table presents revenues and expenses of the firms. Firm 1 (wheat) Firm 2 (bread) Firm 3 (hamburger) Revenue from sales 150 Revenue from sales 300 Revenue from sales 500 Sales tax 30 Sales tax 50 Wages 90 Wages 60 Wages 80 Wheat purchases 150 Bread purchases 300 Profit 60 Profit 60 Profit 70 Depreciation 20 Depreciation 20 (a) Calculate GDP from the production approach. Also, find the value added of each of the three firms. (b) Calculate GDP from the income approach.

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a To calculate GDP from the production approach and find the value added of each firm we need to sum ... View the full answer