Answer to Question #48796 in Macroeconomics for MUHAMMAD Abid
The baker uses the floar to make a floar and sells it to consumer for 6$.
1.Value added in each stage of production?
NOTE; The value of the finished goods already includes the value of the intermediate goods.So, including intermediate goods in GDP would be 'double counting'
2.GDP is the final value added of production during all stages, so: GDP = 1 + 2 + 3 = $6.
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