ECON 2400 Final: Ex1_GDP_example.pdf

• School: York University
• Department: Economics
• Course: ECON 2400
• Professor: Wai Ming Ho

Document Summary

Its economic activities in 2010 are as follows. Total output = total revenue = ,000 wages = ,000 interest on loans = ,500 taxes = ,500 after-tax pro t = ,000. Apple juice sold to domestic public = ,000. Apple juice sold to foreign countries (exports) = ,000. Total output = total revenue =,000 cost of apples = ,000 wages = ,000 taxes = ,000 after-tax pro t = ,000. Government collected taxes and hired workers to provide public services tax revenues = t =,500 + ,000+ ,000 = ,500 public services = g = ,500 wages to government workers = ,500. Gdp = ,000 + ,000 + ,500 = ,500. (value added) Gdp = ,000 + ,000 + ,500 = ,500. ( nal product: the expenditure approach. Consumption = c = ,000 + ,000 = ,000. Gdp = ,000 + ,000 + ,500 + ,000 = ,500: the income approach.