Q3. In a simple economy, suppose that all income is either compensation of employees or profits. Suppose also that there are no indirect taxes. Calculate gross domestic product from the following set of numbers. Show that the expenditure approach and the income approach add up to the same figure Consumption Investment 10 $9,500 3,000 Depreciation Profits 1,750 2,400 Exports Compensation of employees Government purchases Direct taxes 850 11,500 3,200 1,200 Saving Imports 1,600 900
Q3. In a simple economy, suppose that all income is either compensation of employees or profits. Suppose also that there are no indirect taxes. Calculate gross domestic product from the following set of numbers. Show that the expenditure approach and the income approach add up to the same figure Consumption Investment 10 $9,500 3,000 Depreciation Profits 1,750 2,400 Exports Compensation of employees Government purchases Direct taxes 850 11,500 3,200 1,200 Saving Imports 1,600 900
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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