Thursday, November 24, 2011

Finding GDP of an economy given certain information?

This is the exact problem I was given. I'm stuck!





Here are some data for an economy. Find its GDP. Explain your calculation.





Government purchases of goods and services 360


Compensation of employees 210


Exports 28


Interest and Dividend income 23


Business fixed investment 70


Imports 40


Beginning-of-year inventory stocks 90


End-of-year inventory stocks 97


Private Consumption Expenditures 720


Household saving 25


Household taxes 150|||Expenditure approach:


GDP = Y = C+I+G+Ex-Im = 720+(97-90+70)+360 +28-40 = 1145





Rest of elements are required for another type of calculations (income method, personal income, etc..)

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