Solve all parts.. --, Jse the relevant information below:Inventory investmentFixed investmentConsumer durablesConsumer nondurablesInterestIndirect business taxesGovernment wages and salariesGovernment purchases of goods andservicesImportsExportsConsumer semi-durablesProfitsConsumer services$ 50 billion120 billion420 billion275 billion140 billion45 billion300 billion110 billion80 billion40 billion185 billion320 billion600 billion1. Calculate Consumption, Investment, Government spending.2. Explain the expenditure method of calculating the GDP. How this method is different from the incomemethod of calculating the GDP?3. Use suitable method to calculate GDP and show your work.

Gross domestic product (GDP) is the standard degree of the value introduced created through the…

Exports Consumer semi-durables Profits Consumer services 1. Calculate Consumption, Investment, Government spending. 40 billion 185 billion 320 billion 600 billion 2. Explain the expenditure method of calculating the GDP. How this method is different from the income method of calculating the GDP? 3. Use suitable method to calculate GDP and show your work.

Exports Consumer semi-durables Profits Consumer services 1. Calculate Consumption, Investment, Government spending. 40 billion 185 billion 320 billion 600 billion 2. Explain the expenditure method of calculating the GDP. How this method is different from the income method of calculating the GDP? 3. Use suitable method to calculate GDP and show your work.

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter8: Aggregate Demand And The Powerful Consumer

Section8.A: National Income Accounting

Problem 3TY

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Assume there are only two producing sector Y & Z in an economy. Calculatea) Gross value added at market price by each sector b) National income from the followings:Items Amount in CroresNet factor income from abroad- 20Sales by Y= 1000Sales by Z= 2000Change in stock of Z= -200C Closingstock of Y= 50 Opening stock of Y= 100Consumption of fixed capital by Y & Z= 180Indirect taxes paid by Y & Z= 120Purchase of raw material by Y= 500Purchase of raw material by Z= 600Exports by Z= 70
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