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solong [7]
3 years ago
11

Company X sells leather to company Y for $60,000. Company Y uses the leather to make shoes, selling them to consumers for $180,0

00. The total contribution to gross domestic product (GDP) is
Mathematics
1 answer:
vekshin13 years ago
5 0

Answer: $180,000

Step-by-step explanation:

Gross Domestic Product (GDP) is the total monetary value of all finished goods and services made within a country during a specific period. It can be used to estimate the size and growth rate of the country's economy.

In the case above Company X sell leather which is not a finished good to Company Y, so it will not contribute to the gross domestic product (GDP). Company Y sells leather shoes which is a finished good to the consumers, which will contribute to the GDP.

Therefore the total contribution to GDP is $180,000

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