In a simple economy, a farmer sells wheat to a miller for $20. The miller grinds the wheat into flour and sells it to a baker for $35. The baker uses the flour to make bread and sells it to a grocery store for $60. Finally, the grocery store sells the bread to a customer for $75. Based on these transactions, what is the total contribution to this economy's gross domestic product (GDP)?

Identifying Errors in GDP Calculation

GDP Calculation for a New Car

An economy consists of three companies. Company A harvests raw lumber and sells it to Company B for $2,000. Company B uses the lumber to manufacture furniture, which it sells to Company C, a retailer, for $5,000. Company C then sells the furniture to a final consumer for $8,000. Based on these transactions, the total value added to the economy's gross domestic product (GDP) is $____.