A steel company sells some steel to a bicycle company for $100. The bicycle company uses the steel to produce a bicycle, which it sells for $200. taken together, these two transactions contribute
a. $100 to GDP.
b. $200 to GDP.
c. between $200 and $300 GDP, depending on the profit earned by the bicycle company when it sold the bicycle.
d. $300 to GDP.
Answer: B
Macroeconomics
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