Business, 18.02.2020 01:04 krazyapril4601
Suppose a closed economy. Suppose there are a farmer, a baker and the consumers residing in this economy. Flour and bread are the only things produced. The farmer produces flour that is worth $100,000. The baker buys $80,000 worth of flour to make bread and the consumers buy $20,000 worth of flour directly from the farmer. The baker bakes bread that is worth $120,000 and sells those to the consumers. The farmer hires consumers and pays $15,000 in wages; the baker pays $10,000 in wages. The government collects $5,000 of tax from the farmer, $6,000 from the baker and $3,000 from the consumers. The government also spends $14,000 to hire consumers to operate the government.
Required:
a. How much is the total spending on all final goods and services produced?
Answers: 1
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Suppose a closed economy. Suppose there are a farmer, a baker and the consumers residing in this eco...
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