Suppose a farmer sells a bushel of wheat to a miller for $1;the miller makes it into flour and sells it to a baker for $2;the baker turns it into bread and sells it to a customer for $3.Calculating GDP the contribution of transactions would be

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Quizplus · Accepted Answer

GDP measures the market value of all final goods and services produced in a country during a given period. In this scenario, the final product is bread, which sells for $3. The intermediate transactions (wheat to flour, flour to bread) are not counted separately in GDP to avoid double counting.

Suppose a Farmer Sells a Bushel of Wheat to a Miller