Suppose that mr. green jeans sells $5,000 of wheat to big ben bakery. big ben uses the wheat to make flour and then hamburger buns, which they sell to hamburger heaven for $11,000. hamburger heaven also buys $20,000 of beef from a rancher. hamburger heaven uses the beef and buns to make 10,000 hamburgers which are sold for $5 each. how much do these transactions add to gdp?

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Business

Stephens

12 July, 13:29

Suppose that mr. green jeans sells $5,000 of wheat to big ben bakery. big ben uses the wheat to make flour and then hamburger buns, which they sell to hamburger heaven for $11,000. hamburger heaven also buys $20,000 of beef from a rancher. hamburger heaven uses the beef and buns to make 10,000 hamburgers which are sold for $5 each. how much do these transactions add to gdp?

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Aidan Bridges · Answer 1

The gross domestic product (GDP) measures the monetary status of the market value of all final goods and services. With this definition therefore, the GDP of all these transactions only account the selling the final product, hamburger.

Add to GDP = 10,000 * $5

Add to GDP = $50,000