Help calculating GDP in economics?

Consider the following supply chain for bread production in an economy.





A farmer sells wheat to a bakery for $10. The bakery makes 110 loaves from the wheat and sells them to a wholesaler for $100. The wholesaler in turns sells the 110 loaves for $105 to various grocery stores. The grocery stores sell the 110 loaves to consumers for $1 apiece.





a. Calculate value of output at each stage of production and show the contribution of each stage to GDP.


b. What is GDP using the final sales approach?


c. What is GDP using the value added approach?


|||a)


Value of output:


Farmer = $10


Bakery = $100


Wholesaler = $105


Stores = 110 x $1 = $110





Value added:


Farmer = +$10


Bakery = 100-10 = +$90


Wholesaler = 105 - 100 = +$5


Stores = 110 - 105 = +$5





b)


GDP (Final sales approach) = 110 x $1 = $110





c)


GDP (Value added approach) = $10 + $90 + $5 + $5 = $110