Suppose an economy produces aluminum, microchips and computers. The aluminum industry produces $230,000 in revenue, spends $30,000 on microchips, $35,000 on computers, pays workers $75,000. The microchip industry produces $180,000 in revenue, spends $40,000 on aluminum, $25,000 on computers and pays workers $90,000. The computer industry produces $160,000 in revenue, spends $40,000 on microchips, $35,000 on aluminum and pays workers $60,000. There is no government. Calculate GDP using the production and income approaches.

Suppose an economy produces aluminum, microchips and computers. The aluminum industry produces $230,000 in revenue, spends $30,000 on microchips, $35,000 on computers, pays workers $75,000. The microchip industry produces $180,000 in revenue, spends $40,000 on aluminum, $25,000 on computers and pays workers $90,000. The computer industry produces $160,000 in revenue, spends $40,000 on microchips, $35,000 on aluminum and pays workers $60,000. There is no government. Calculate GDP using the production and income approaches.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Production And Growth

Section: Chapter Questions

Problem 5CQQ

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