What is the value of output in the economy

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Consider an economy that consists only of those who bake breadand those who produce its ingredients. Suppose that this economy'sproduction is as follows: 1 million loaves of bread (sold at $2each); 1.2 million pounds of flour (sold at $1 per pound); and100,000 pounds each of yeast,sugar,and salt (all sold at $1 perpound).The flour,yeast,sugar,and salt are sold only to bakers,whouse them exclusively for the purpose of making bread. (A).What is the value of output in the economy (i.e, nominalGDP)?. (B).How much value is added to the flour,yeast,sugar,and salt whenthe bakers turn them into bread?.

Reference no: EM131196110

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