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Question: A farmer grows wheat, which she sells to a miller for $100. The miller turns the wheat into flour, which she sells to the baker for $150. The baker turns the wheat into bread, which she sells to the consumers for $180. Consumers eat the bread.
(a) What is the GDP of this economy if this is the only production? Explain your answer in no more than 2 sentences
(b) What is the value added in this economy? Hint - Value added at each stage of production is the revenue earned - cost. When you add up value-added at each stage of production, you get the total value-added. Take the farmer's cost as 0.
The problem related to Economics, particularly Macroeconomics. It is deals with the indicators of economic development and the associated political risk.
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imagine the world contains only two nations and that one of them is experiencing capital flight. In the diagram, below trace out the effect of this capital flight on the other nation. Indicate whether the real interest rate.
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You can either take a bus or drive your car to work. A bus pass costs $5 per week, whereas driving your car to work costs $60 weekly. You spend half an hour less on a one-way trip in your car than on a bus. How would you prefer to travel to work if y..
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There are two forces that cause the economy to grow. One is real, the other is an illusion. The real force-entrepreneurial innovation and creativity- comes.
Suppose that initially G is $100 and equilibrium real GDP demanded is $1,000. If the multiplier is 4 & G increases to $200, real GDP demanded will increase
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