Assume That a Rancher Sells McDonald's a Quarter-Pound of Meat

question 96

Multiple Choice

Assume that a rancher sells McDonald's a quarter-pound of meat for $1 and that McDonald's sells you a hamburger made from that meat for $2. In this case, GDP increases by:

• A)$0.50.
• B)$1.
• C)$2.
• D)$3.