One bag of flour is sold for 100 to a bakery which uses the, Ask an Expert

Economics

One bag of flour is sold for $1.00 to a bakery, which uses the flour to bake bread that is sold for $3.00 to consumers. A second bag of flour is sold to a consumer in a grocery store for $2.00. Taking these three transactions into account, what is the effect on GDP?

a. GDP increases by $2.00.

b. GDP increases by $3.00.

c. GDP increases by $5.00.

d. GDP increases by $6.00.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M92196036

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