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26 Jul 2018
Firm 1 produces steel, employing workers and using machines. It sells the steel for $100 to Firm 2, which produces cars. Firm 1 pays its workers $80 and keeps what remains, $20, as profit.
Firm 2 buys the steel and uses it, together with workers and machines, to produce cars. Revenues from car sales are $210. Of the $210, $100 goes to pay for steel and $70 goes to workers in the firm, leaving $40 in profit.
used the expenditure approach, value added approach and income approach to calculate the GDP.
by the way, would u wrrit down the definition about the formula.
Firm 1 produces steel, employing workers and using machines. It sells the steel for $100 to Firm 2, which produces cars. Firm 1 pays its workers $80 and keeps what remains, $20, as profit.
Firm 2 buys the steel and uses it, together with workers and machines, to produce cars. Revenues from car sales are $210. Of the $210, $100 goes to pay for steel and $70 goes to workers in the firm, leaving $40 in profit.
used the expenditure approach, value added approach and income approach to calculate the GDP.
by the way, would u wrrit down the definition about the formula.
Jean KeelingLv2
28 Jul 2018
