company x sells paper to company y for $100,000. company y uses the paper to make textbooks, selling them to consumers for $500,000. the total contribution to gdp is:

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04-11-2022
Business

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company x sells paper to company y for $100,000. company y uses the paper to make textbooks, selling them to consumers for $500,000. the total contribution to gdp is:

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The total contribution to GDP by company X and Y is $500,000 as it is the consumer expenditure. $100,000 will not be added or subtracted as it will lead to double counting.

GDP growth can be analysed as the sum of the contributions from each of its constituent parts, including household, general government, and nonprofit organisations that serve households. These components also include investments, consumer expenditures, changes in inventories, and trade balance.

The industries that contributed the most to the GDP of the United States in 2021 were finance, real estate, insurance, rental, and leasing. This sector increased the country's GDP by 4.88 trillion dollars in that year.

GDP is calculated as follows: GDP = C + I + G + (X-M).

Consumer expenditure is represented by C, corporate investment by I, government spending by G, and net exports by (X-M).

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