Consider an economy with two firms and a government. Fim I produces 10000 units of good X, which it sells for $20 per unit. Ik uses this revenue to pay S140000 in wages, S10000 in taxes, and S10000 in interest on a loan, with the rest as profits. Firm I sells some of its output to consumens, and sonme to Firm 2 as an intermediate good in their production proces. Firm 2 uses good X as an input into its manufacturing process, It buys 8000 units of good X and uses them to create 1000 units of good Y, which it sells for S400 per unit. It pays $200000 in wages and $20000 in taxes, with the rest as profits The government takes in taxes from only these two fims, and uses it to pay wages to provide government services, for instance national defense. a) Calculate GDP using the three different methods. Of course, you'll amive at the same answer, however, indicate clearly what values you're using in cach case to arrive at the final answer, so as to illustrate you know what is included in cach method of calculating GDP. I lncome approach: 2)Expenditure approach: 3)Product(value-addod) approach:

Consider an economy with two firms and a government. Fim I produces 10000 units of good X, which it sells for $20 per unit. Ik uses this revenue to pay S140000 in wages, S10000 in taxes, and S10000 in interest on a loan, with the rest as profits. Firm I sells some of its output to consumens, and sonme to Firm 2 as an intermediate good in their production proces. Firm 2 uses good X as an input into its manufacturing process, It buys 8000 units of good X and uses them to create 1000 units of good Y, which it sells for S400 per unit. It pays $200000 in wages and $20000 in taxes, with the rest as profits The government takes in taxes from only these two fims, and uses it to pay wages to provide government services, for instance national defense. a) Calculate GDP using the three different methods. Of course, you'll amive at the same answer, however, indicate clearly what values you're using in cach case to arrive at the final answer, so as to illustrate you know what is included in cach method of calculating GDP. I lncome approach: 2)Expenditure approach: 3)Product(value-addod) approach:

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

How to calculate break even point, and give example.
Round $761.88972091 to the nearest cent. (NOTE: Do not include the $ in your answer.) Your Answer:
Solve it now. Not copy paste answer provided
PLS HELP ASAP
The Federal Reserve decides to buy bonds and there is a change in the equilibrium bond price. What bond price is most likely? Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a not enough information b 940 c 950 d 960
QUESTION 20 You need to retain physical proof of your income and expenses in case the IRS questions the accuracy of your tax return. O True O False
#7
4a) What is a SARS report and when is it used?4b) What are the roles of banks in AML prevention?
Can I see part A - D ?
Choose the correct option. In 2010 in the aftermath of the global financial crisis, some were concerned that pressures might be put on the Federal Reserve to purchase government bonds to help the government to stimulate the lagging economy. If the Fed were to buy government bonds to help the government finance its expenditures, then the price level would. (a) fall, so the value of money would fall. (b) fall, so the value of money would rise. (c) rise, so the value of money would fall. (d) rise, so the value of money wouldrise.
Looking for sample grant proposals for nonprofit organization
The value of savings is $250 and the income is $800 Calculate the value of APC