A farmer grows a bushel of wheat and sells it to a miller for $1.00. The miller turns the wheat into flour and then sells the flour to a baker for $3.00. The baker uses the flour to make bread and sells the bread to an engineer for $6.00. The engineer eats the bread. What is the value added by each person? What is GDP?

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A: Real GDP can be calculated by using the following formula.

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Q: The factor payments measure of GDP

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A:

Q: ato flour and then sells it to a Baker for $25.00. The Baker uses the flour to bake bread and sells…

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