Part 1 - Measuring Aggregate Output Consider an economy with three firms (a berry farmer, a jelly maker, and gourmet PBJ restaurant), as well as many consumers. Each firm is owned by a single individual who keeps all profits for their business. This year Bailey the berry farmer grew 55 tons of berries, which she sold to Jamal's jelly-making business for $6,000 per ton. Bailey employed workers who earned $240,000 in wages. Jamal used the berries to produce 80,000 jars of berry jelly. He sold 60,000 bottles to Greer's Gourmet PBJ restaurant for $8 per jar and exported the remaining 20,000 bottles at $10 per jar. Jamal paid wages to his workers totaling $250,000. Greer imported $40,000 worth of peanut butter and $80,000 worth of bread, which he used to make gourmet peanut butter and jelly sandwiches for his restaurant. Greer's firm earned total revenue of $970,000. Greer paid his workers $290,000 in wages. You can ignore all capital expenses (like the costs for equipment, buildings, etc.). Note that all workers are also consumers in this economy. Show your work on all parts below! a. (3 points) Calculate total value added for each of the three firms separately. b. (3 points) Calculate total profits for each of the three firms separately. c. (1 point) Calculate gross domestic product for this economy using the product approach. d. (1 point) Calculate gross domestic product for this economy using the expenditure approach.
e. (1 point) Calculate gross domestic product for this economy using the income approach.