microecon

microecon

2. Suppose that Jiffyland produces nothing but peanut butter. In 2013 the following activities were observed:

1.	Peanut farmers sold $20 million worth of peanuts to distributors.
2.	Distributors sold $30 million worth of peanuts to processors.
3.	Processors sold $50 million worth of peanut butter to producers.
4.	Producers sold $60 million worth of jars of peanut butter to grocers.
5.	Grocers sold $75 million worth of jars of peanut butter to final consumers.

In this example, what are the two methods of calculating GDP? Show and explain.