In the year 2016: • The Fisherman caught fish worth $30, of which $10 was sold to the Restaurant and $20 was sold to consumers • The Brewery brewed beer worth $30 and sold everything to the Restaurant • The Restaurant served meals to consumers worth $130. Fill in the table below and then compute GDP using two methods: 1) summing up all final goods production and 2) the Value Added method. Firm Total Output Intermediate Value added goods used by the firm Fisherman Brewery Restaurant $30 $30 $130

In the year 2016: • The Fisherman caught fish worth $30, of which $10 was sold to the Restaurant and $20 was sold to consumers • The Brewery brewed beer worth $30 and sold everything to the Restaurant • The Restaurant served meals to consumers worth $130. Fill in the table below and then compute GDP using two methods: 1) summing up all final goods production and 2) the Value Added method. Firm Total Output Intermediate Value added goods used by the firm Fisherman Brewery Restaurant $30 $30 $130

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter19: The Macroeconomic Perspective

Section: Chapter Questions

Problem 10SCQ: Explain briefly whether each of the following would cause GDP to overstate or understate the degree...

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Time left 1:09:29 Calculate GDP using the information in the table below: SBillion Durable goods 500 Nonresidential investment 300 Government purchase of goods 400 Exports 300 Government purchases of services 150 Residential investment 100 Services 700 Imports 200 Change in business inventories -50 Nondurable goods 700 Select one O a. 2900 Ob. 2750 1950 Od. 2500
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