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A Steel Company Sells Some Steel to a Bicycle Company

Question 36

Multiple Choice

A steel company sells some steel to a bicycle company for $100.The bicycle company uses the steel to produce a bicycle,which it sells for $200.Taken together,these two transactions contribute


A) $100 to GDP.
B) $200 to GDP.
C) between $200 and $300 to GDP, depending on the profit earned by the bicycle company when it sold the bicycle.
D) $300 to GDP.

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