Homework Answers
Zach spends 1100 $ . ( Zach is the final consumer and buys the final product )
Total contribution to GDP = 1100 $ ( If 750 $ is also counted then there will be double counting error )
Cost of intermediate goods : _ , 100 ( Firedog pays 100 to Home station ) , 750 ( Better buy pays 750 for installation )
Value added : 100 , ( 750 - 100 ) = 650 , (1100 - 750 ) = 350
Sum of value added = 100 + 650 + 350 = 1100 $
Corresponds to sum of value added .
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