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Suppose there are only two firms, …

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Suppose there are only two firms, A and B in an imaginary economy. Firm A uses no raw material and producescotton worth 50 lakhs. Form A gives 20 lakhs to the workers as wages and keeps the remaining 330 lakhs to bedistributed as rent, interest and profits, Firm A sells its cotton to firm B. who uses it produce cloth. Firm B sellsthe doth produced to consumers for 3200 lakhs and gives 760 lakhs as wages and keeps the remaining incomegenerated as profits. Assuming no depreciation and indirect taxes or subsidies, calculate GDP by three methods.

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CBSE > Class 12 > Economics

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