Company X sells paper to company Y for $100,000.Company Y uses the paper to make textbooks,selling them to consumers for $500,000.The total contribution to GDP is:

Question

Quizplus · Accepted Answer

The total contribution to GDP is $500,000, which is the final sale of the textbooks to consumers. The sale of paper is an intermediate transaction and is not counted separately in GDP to avoid double counting.

Company X Sells Paper to Company Y for $100,000