Cheese Mart LLC sells cheese to Pizza Palace for $1,500. Pizza Palace uses the cheese to make pizzas, selling them to consumers

Question

NeTakaya

3 years ago

6

Cheese Mart LLC sells cheese to Pizza Palace for $1,500. Pizza Palace uses the cheese to make pizzas, selling them to consumers

for a total of $9,000. These transactions contribute ________ to the gross domestic product (GDP).

Business

1 answer:

Mamont248 [21] · Answer 1 · 2022-08-11T17:32:15+03:00

Answer: $9000

Explanation:

The gross domestic product (GDP) is the final value of the goods that are produced in an economy. In this case, we are only interested in the final value which is the $9000.

It should be noted that when Cheese Mart LLC sells cheese to Pizza Palace for $1,500, this is an intermediate good and should not be counted when calculating the GDP.