soln104 - Problem Set #1 Solutions 1. First, fill out the...

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Problem Set #1 Solutions 1. First, fill out the gross production statements for the coal and steel producers. Gross Production Statement (Coal) Costs Receipts Raw Materials $0m. Sales of Product $75m. Wages $50m. Inventory Change $0m. Business Profits $25m. Gross Value of Inputs $75m. Gross Value of Output $75m. Coal Producer’s GDP Costs Receipts Wages $50m. Sales of Product - Raw Materials $75m. Business Profits $25m. Inventory Change $0m. Value Added from Inputs $75m. Value Added to Output $75m. Gross Production Statement (Steel) Costs Receipts Raw Materials $125m. Sales of Product $200m. Wages $40m. Inventory Change $0m. Business Profits $35m. Gross Value of Inputs $200m. Gross Value of Output $200
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Steel Producer’s GDP Costs Receipts Wages $40m. Sales of Product - Raw Materials $75m. Business Profits $35m. Inventory Change $0m. Value Added from Inputs $75m. Value Added to Output $75 a) (i) Product approach: Coal producer produces 15 million tons of coal at $5/ton, which adds $75 million to GDP. The steel producer produces $10 million tons of
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soln104 - Problem Set #1 Solutions 1. First, fill out the...

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