3. Suppose an economy produces steel, wheat, and oil. The steel industry produces $100,000 in revenue, spends $4,000 on oil, $10,000 on wheat, pays workers $80,000. The wheat industry produces $150,000 in revenue, spends $20,000 on oil, $10,000 on steel, and pays workers $90,000. The oil industry produces $200,000 in revenue, spends $40,000 on wheat, $30,000 on steel, and pays workers $100,000. There is no government. There are neither exports nor imports, and none of the industries accumulate or deaccumulate inventories. Calculate GDP using the production and income methods.
3. Suppose an economy produces steel, wheat, and oil. The steel industry produces $100,000 in revenue, spends $4,000 on oil, $10,000 on wheat, pays workers $80,000. The wheat industry produces $150,000 in revenue, spends $20,000 on oil, $10,000 on steel, and pays workers $90,000. The oil industry produces $200,000 in revenue, spends $40,000 on wheat, $30,000 on steel, and pays workers $100,000. There is no government. There are neither exports nor imports, and none of the industries accumulate or deaccumulate inventories. Calculate GDP using the production and income methods.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:3. Suppose an economy produces steel, wheat, and oil. The steel industry
produces $100,000 in revenue, spends $4,000 on oil, $10,000 on wheat, pays
workers $80,000. The wheat industry produces $150,000 in revenue, spends
$20,000 on oil, $10,000 on steel, and pays workers $90,000. The oil industry
produces $200,000 in revenue, spends $40,000 on wheat, $30,000 on steel,
and pays workers $100,000. There is no government. There are neither
exports nor imports, and none of the industries accumulate or deaccumulate
inventories. Calculate GDP using the production and income methods.
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