You have been employed as the chief economist for the economy SKL Land. The head statistician has provided you with the following information: Compensation of Employees 900 Consumption of goods 850 Corporate profits 400 Rent Income 125 Factor income paid to the world 325 Consumption of services 475 Factor Income received from the world 170 Residential investments 350 Indirect taxes 775 Non-residential investments 525 Subsidies 125 Government Expenditure 925 Depreciation 120 Imports 700 Net interest 75 Exports 300 Proprietors income 300 Calculate SKL Land’s GDP using (1) the Income and (2) the Expenditure Approach
Question 1 (AV7.1)
You have been employed as the chief economist for the economy SKL Land. The head statistician has provided you with the following information:
|
Compensation of Employees 900 |
Consumption of goods 850 |
|
Corporate profits 400 |
Rent Income 125 |
|
Factor income paid to the world 325 |
Consumption of services 475 |
|
Factor Income received from the world 170 |
Residential investments 350 |
|
Indirect taxes 775 |
Non-residential investments 525 |
|
Subsidies 125 |
Government Expenditure 925 |
|
|
Imports 700 |
|
Net interest 75 |
Exports 300 |
|
Proprietors income 300 |
Calculate SKL Land’s
Income approach:
GDP = Operating Surplus + Proprietor's Income + Compensation of Employees + Depreciation + Net Indirect Taxes
GDP = 125+400+75+300+900 + 120 + (775-125)
GDP = 600 + 1320 + 650 = $2570
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