Business, 11.02.2020 19:36 offshoreext
The expenditure and value-added approaches to calculating GDP arrive at the same final number, but they reach that number in different ways. To illustrate, consider the possible effects of the following set of transactions on GDP:
1. Lorenzo pays Awesome Foods Market $1,100 to cater his daughter's engagement party. He's attracted by Awesome Foods Market's guarantee that he'll be happy with the catering or get his money back.
2. Awesome Foods Market pays Joann's Catering $950 to cater the party.
3. Joann's Catering buys plasticware worth $200 from Kostko.
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The expenditure and value-added approaches to calculating GDP arrive at the same final number, but t...
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