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George owns a house on a 10-acre lot filled with peach trees. Each year he hires a few workers to pick the peaches and he sells them to Patti’s Pies for $5,000. Patty uses the peaches to makes pies that she sells for $8,000 to local restaurants. The local restaurants sell the pies (by the slice) to consumers for $10,000. a. As a result of these transactions, GDP increases by:

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Answer:

$23,000

Explanation:

The gross domestic product is the value of the products and services that a certain country produces in a certain period of time, in this case the GDP increase that these transactions made would be $23,000 eventhough they all had to do with the same natural resource, economy grew because of it, George gained $5,000, Patty gained $8,000 and the restaurants made $10,000 out of it

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