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A car manufacturer buys steel for \$500, processes it into car parts for \$1000, and sells the final car for \$2000. What is the total value added?
What would be the impact on GDP if intermediate goods were included in the calculation?
If a bakery buys flour for \$2, sugar for \$1, and sells a cake for \$10, what is the value added by the bakery?
What is a key benefit of using the value added method for GDP calculation?
A farmer sells wheat for \$100 to a miller, who turns it into flour and sells it for \$150 to a baker. The baker makes bread and sells it for \$200. What is the total value added to GDP?
What is a potential drawback of not using the value added method for GDP calculation?
Why are intermediate goods excluded from GDP in the value added method?
What is the significance of excluding intermediate goods from GDP measurement?
What is a key benefit of using the value added method for GDP calculation?
A textile company buys cotton for \$50, processes it into fabric for \$100, and sells it to a clothing manufacturer for \$200. The manufacturer sells the final clothing product for \$500. What is the total value added?