Assume an economy has 2 firms firm a produces wheat and


Assume an economy has 2 firms. Firm A produces wheat and firm B produces bread. In a given year, firm A produces 50,000 bushels of wheat, sells 20,000 bushels of wheat to firm B at $3 per bushel, export 25,000 bushels of wheat at $3 per bushel and stores the rest as inventory. Firm A pays $50,000 in wages to consumers. Firm B produces 50,000 loaves of bread and sells all of it to domestic consumer at $2 per loaf. Firms B pays consumers$20,000 in wages. The economy also imports and consumes 15,000 loaves of bread for a $1 per loaf.

(a) Calculate Net Exports.

(b) Find Investment.

(c) Calculate GDP.

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Macroeconomics: Assume an economy has 2 firms firm a produces wheat and
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