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Go to the website of the Bureau of Economic
Analysis and find the growth rate of real GDP
for the most recent quarter. Go to the website of
the Bureau of Labor Statistics and find the inflation
rate over the past year and the unemployment
rate for the most recent month. How do
you interpret these data?
2. A 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?