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Business, 16.07.2019 04:10 ccory0626

Suppose there are only two firms in an economy: cowhide, inc. produces leather and sells it to couches, inc., which produces and sells leather furniture. with each $1,000 worth of leather that it buys from cowhide, inc., couches, inc. produces a couch and sells it for $2,600. neither firm had any inventory at the beginning of 2015. during that year, cowhide produced enough leather for 25 couches. couches, inc. bought 80% of that leather for $20,000 and promised to buy the remaining 20% for $5,000 in 2016. couches, inc. produced 20 couches during 2015 and sold each one during that year for $2,600. what was the economy's gdp for 2015?

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