Question

tion rate over the past year and the unemploy ment rate for the most recent month. How do you interpret these data? wh pay Tim $60 $75 futu act 2. A farmer grows a bushel of wheat and sells it to a miller for $1. The miller turns the wheat into flour and then sells the flour to a baker for $3. The baker uses the flour to make bread and sells the bread to an engineer for $6. The engineer eats the bread. What is the value added by each person? What is the bread's contribution to GDP? uppose a woman marries her butler. After they are married, her husband continues to wait on her as before, and she continues to support him as before (but as a husband rather than as an employee). How does the marriage affect GDP? How do you think it should affect GDP? C. e. f. C g. P h. D 4. Place each of the following transactions in one of the four components of expenditure: consumption, investment, government purchases, and net exports. 7.L a. Boeing sells an airplane to the U.S. Air Force b. Boeing sells an airplane to American Airlines. ro burg differ c. Boeing sells an airplane to Air France d. Boeing sells an airplane to Amelia Earhart e. Boeing builds an airplane to be sold next year.Good 5. Find data on GDP and its components, and Hot dog compute the percentage of GDP for the tollow- ing components for 1950, 1980. and the most recent year available Hambur
Question 2 and 4

Answer 1

a) The farmer added $1 only. As the miller is turning the wheat into the flour the value added by him is $2. the baker added the value of $3 while making he bread. the last consumer is the engineer who brought the bread for $6, the final value of the bread will be added to the GDP and the final contribution will be $6 to the GDP.

b) US airforce is the part of the US government so it will be added to the government expenditure.

Boeing sold to the american airline will be part of investment.

Plane sold to Air France will be part of Net exports.

Plane sold to Emilia Earhart will be part of consumption.

Boeing build and kept in the inventory will be part of the investment.