ECON 2202 Lecture 9: Assignment1 Answer

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31 May 2019
School
Department
Course
Professor
Assignment1
Quetion2:
A)
Income Approach
Wage income= 140000+200000+30000=370000
After-tax profits= 40000+20000=60000
Interest income= 10000
Tax= 10000+20000=30000
GDP= 470000
Expenditure:
Consumption= 2000*20+1000*400=440000
Government expenditure=30000
GDP=470000
Product Approach:
Value-added by firm1: 10000*20=200000
Value-added by firm2: 1000*400-8000*20=240000
Value-added by government: 30000
GDP= 470000
B)
Using the product approach
Value-added by firm 1 should drop by 40000
GDP drop by 40000
C)
GNP = 470000
GDP = 430000
Question3.
Year
Nominal
Real
Real
Real GDP
Lecture2
Thursday, September 27, 2018
11:05 AM
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