In a simple economy suppose that all income is either compensation of employees or profits. suppose also that there are no indirect taxes. all data are in billion dollars: category valueconsumption 4,500gross investment 1,200depreciation 655profits 655exports 500compensation of employees 5240government purchases 900direct taxes 750saving 546imports 550

find gdp using the

(a) expenditure

(b) income approach.

Explanation:

Giving the following information:

Consumption 4,500

Gross Investment 1,200

Depreciation 655

Profits 655

Exports 500

Compensation of Employees 5240

Government Purchases 900

Direct Taxes 750

Saving 546

Imports 550

A) GDP=C+I+G+/-NX

GDP= 4,500 + 1,200 + 900 + 500 - 550= 6,550

B) GDP Formula = Total National Income + Sales Taxes + Depreciation + Net Foreign Factor Income

GDP= 655 + 750 + 655 + 5,240= 7,300

Total national income = Sum of rent, salaries, profit.

Sales Taxes = Tax imposed by a government on sales of goods and services.

Depreciation = the decrease in the value of an asset.

Net Foreign Factor Income = Income earn by a foreign factor like the amount of foreign company or foreign person earn from the country and it is also the difference between a country citizen and country earn.

answer; i do believe that the correct answer is (d) referrals from

answer; hazards;