In other words, what is the value of the final goods the nation produced including trees, lumber and bookshelves?

Question

Last year, a small nation with abundant forests cut down $200 worth of trees. It then turned $100 worth of trees into $150 worth of lumber. It used $100 worth of that lumber to produce $250 worth of bookshelves. Assuming the country produces no other outputs, and there are no other inputs used in producing trees, lumber, and bookshelves, what is this nation's GDP?

Answer 1

100 dollars of the 200 in timber harvested is an inventory investment. $50 of Lumber is an inventory investment. $250 is a final good (bookcases. ) so total GDP is 250 +100+50 = 400