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Question: gregory mankiw macroeconomics 10th chapter 2 problems and applications 24...

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Gregory Mankiw, Macroeconomics (10th)
Chapter 2: Problems and Applications #2,4

farmer grows a bushel of wheat and sells it to a miller for $1. The miller turns the wheat into flour and then sells the flour to a baker for $3 The baker uses the flour to make bread and sells the bread to an engineer for $6. The engineer eats the bread. What is the value added by each person? What is the breads contribution to GDP?
4. Place each of the following transactions in one of the four components of expenditure: consumption, investment, government purchases, and net exports. a. Apple sells a computer to a public school in Paris, Kentucky b. Apple sells a computer to an accounting firm in Paris, Illinois.
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