Jse the relevant information below:Inventory investment.$50 billion120 billionFixed investmentConsumer durables420 billion275 billionConsumer nondurablesInterest140 billionIndirect business taxes45 billionGovernment wages and salaries300 billionGovernment purchases of goods and110 billionservicesImports80 billionExports40 billionConsumer semi-durables185 billionProfits320 billionConsumer services600 billion1. Calculate Consumption, Investment, Government spending2. Explain the expenditure method of calculating the GDP. How this method is different from the incomemethod of calculating the GDP?3. Use suitable method to calculate GDP and show your work.

Gross domestic product (GDP) is the standard degree of the value introduced created through the…

Imports Exports Consumer 80 billion 40 billion 185 billion semi-durables Profits 320 billion. Consumer services 600 billion 1. Calculate Consumption, Investment, Government spending 2. Explain the expenditure method of calculating the GDP. How this method is different from the income method of calculating the GDP? 3. Use suitable method to calculate GDP and show your work.

Imports Exports Consumer 80 billion 40 billion 185 billion semi-durables Profits 320 billion. Consumer services 600 billion 1. Calculate Consumption, Investment, Government spending 2. Explain the expenditure method of calculating the GDP. How this method is different from the income method of calculating the GDP? 3. Use suitable method to calculate GDP and show your work.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Please see attachment and choose correct answer and explain it neatly
Prawesh the sheep farmer sells wool to Omar the knitter for $25. Cost of farming his sheeps to produce wool of $25 value is $5. Omar makes three sweaters, each of which has a market price of $50. Annisa and her friends buy all the sweaters. From this sales, Omar makes profit of $100. Calculate the GDP using three approaches (and explain the calculation) 1. What is the final value of the production? 2. What is the total income? 3. What is the total expenditure?
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