Which uses the flour to bake bread

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Reference no: EM131386215

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 $2.00.

b. GDP increases by $3.00.

c. GDP increases by $5.00.

d. GDP increases by $6.00.

Reference no: EM131386215

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