Bountiful Harvest Bakery Buys $4

Multiple Choice

Bountiful Harvest Bakery buys $4.00 of flour from Grinkers' Mill and uses the flour to make bread sold to the public for $12.00. Taking these two transactions into account, what is the effect on GDP?

A) GDP increases by $4.00
B) GDP increases by $8.00
C) GDP increases by $12.00
D) GDP increases by $16.00