Use the expenditure approach to calculate the value of the GDP in column B. Use the income approach to calculate the value of the GDP in column C. Explain in your own words the reason why the aggregate GDP income equals the aggregate GDP expenditure.
Set the GDP expenditure to search for the 4th Quarter data from last year (example Q4/2021). Set Prices: to “Current prices,” and set Seasonal adjustment: to “Seasonally adjusted at annual rates.” Click apply to view the data. There is a button to Download the data if you require.
The data below in Column A shows items from Canada’s national accounts in Qtr4 of 202x. The values are in x$1,000,000.
- Use the expenditure approach to calculate the value of the GDP in column B.
- Use the income approach to calculate the value of the GDP in column C.
- Explain in your own words the reason why the aggregate GDP income equals the aggregate GDP expenditure.
|
GDP Category |
(A) Qtr4-202x Values |
(B) GDP from Expenditure Approach |
(C) GDP from Income Approach |
|
Consumer consumption expenditure |
1,385 |
|
|
|
Government consumption and expenditure |
659 |
|
|
|
Rent and interest |
347 |
|
|
|
Investments by businesses |
535 |
|
|
|
Corporate profit |
992 |
|
|
|
Net exports |
325 |
|
|
|
Wages |
1,422 |
|
|
|
Indirect taxes less subsidies |
312 |
|
|
|
|
444 |
|
|
|
Total |
|
xxx |
xxx |
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