iple Choices
Answer (Choose 1 answer)
One bag of flour is sold for $1.00 to a bakery, which uses the flour to bake bread that is sold for $3.00 to consumers. A second bag of flour is sold to a consumer in a grocery store for $2.00. Taking these three transactions into account, what is the effect on GDP?
A. GDP increases by $3.00.
B. GDP increases by $2.00.
C. GDP increases by $5.00.
D. GDP increases by $6.00.
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