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## Use the following information to answer the question: There are three firms in an economy: X, Y, and Z. Firm X buys \$400 worth of goods from Firm Y, and \$200 worth of goods from Firm Z to produce 250

Use the following information to answer the question: There are three firms in an economy: X, Y, and Z.

Use the following information to answer the question: There are three firms in an economy: X, Y, and Z. Firm X buys \$400 worth of goods from Firm Y, and \$200 worth of goods from Firm Z to produce 250 units of output at \$3 per unit. Firm Y buys \$250 worth of goods from Firm X and \$250 worth of goods from Firm Z to produce 250 units of output at \$4 per unit. Firm Z buys \$100 worth of goods from Firm X and \$500 worth of goods from Firm Y to produce 500 units at \$2 per unit. Given this information, using the Value Added approach to eliminating intermediate goods and services (in order to avoid double-counting), what is the economy’s GDP?