In a model economy scenario LG produced 80,000 dishwashers at $1000 each in USA in 4th quarterof 2019.50,000 dishwashers were sold here in the USA @ $1000 each. 20,000 dishwashers were exported @$1,000 each. Rest of the dishwashers produced in 4th quarter of 2019 remained unsold in 4thquarter of 2019.Calculate the contribution of LG in the 4th quarter of 2019 to US GDP accounts. Use both ValueAdded and Expenditure method. Resolve if there is any discrepancy. (3-4 LINES; SHOW ALL THESTEPS INCLUDING THE FORMULAS)

Answered: In a model economy scenario LG produced…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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In a model economy scenario LG produced 80,000 dishwashers at $1000 each in USA in 4th quarter
of 2019.
50,000 dishwashers were sold here in the USA @ $1000 each. 20,000 dishwashers were exported @
$1,000 each. Rest of the dishwashers produced in 4th quarter of 2019 remained unsold in 4th
quarter of 2019.
Calculate the contribution of LG in the 4th quarter of 2019 to US GDP accounts. Use both Value
Added and Expenditure method. Resolve if there is any discrepancy. (3-4 LINES; SHOW ALL THE
STEPS INCLUDING THE FORMULAS)

Expert Solution

Step 1

$I n v a l u e a d d e d m e t h o d, G D P i s n o t h i n g b u t t h e g r o s s v a l u e o f o u t p u t i n a n y e a r G r o s s v a l u e o f g o o d s p r o d u c e d i n 2019 = Q u a n t i t y o f d i s h w a s h e r \times \cos t o f p r o d u c i n g e a c h d i s h w a s h e r G r o s s v a l u e o f g o o d s p r o d u c e d i n 2019 = 80, 000 \times $ 1000 G r o s s v a l u e o f g o o d s p r o d u c e d i n 2019 = $ 800, 00, 000$

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