GDP Problem. Given the following information, compute GDP by either the Expenditures or the Income approach. [You do not have to compute GDP both ways.] Name which of the two approaches you are using, and identify all the accounts (e.g., “All profits” or “Gross Private Investment”) you use in your computation of GDP. All profits $ 800 Government purchases of goods & services 300 Imports 50 Government transfer payments 250 Exports 50 Gross private investment 500 Rent 20 Wages, salaries 5000 Personal saving 1600 Depreciation 60 Net foreign income 0 Personal consumption expenditures 5200 Taxes on production & tariffs 40 Sales of stocks and bonds 1200 Interest 80
GDP Problem. Given the following information, compute GDP by either the Expenditures or the Income approach. [You do not have to compute GDP both ways.]
Name which of the two approaches you are using, and identify all the accounts (e.g., “All profits” or “Gross Private Investment”) you use in your computation of GDP.
All profits $ 800
Government purchases of goods & services 300
Imports 50
Government transfer payments 250
Exports 50
Gross private investment 500
Rent 20
Wages, salaries 5000
Personal saving 1600
Net foreign income 0
Personal consumption expenditures 5200
Taxes on production & tariffs 40
Sales of stocks and bonds 1200
Interest 80
IDENTIFY: ______________________ APPROACH USED
ACCOUNT $$$$$$$$$$ ACCOUNT $$$$$$$$$$
Consumption $5200 Rent $20
________________ $____________ ______________ $__________
________________ $____________ ________________ $___________
________________ $____________ _______________ $__________
________________ $____________ _______________ $__________
________________ $____________ _______________ $__________
GDP = $____________ GDP = $__________
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