Answer to Question #273455 in Economics for Soul

Question

Consider an economy with two industries. The information technology industry sells $60 of services to final consumers and $100 to the financial sector, which in turn produces $120 of financial services. How much is the GDP in this economy?

Answer 1

As $100 to the financial sector is an intermediate production, then the GDP in this economy is:

Y = 60 + 120 = $180.