Question

There are several computer component makers but only two big business firms in Country X: Computer maker and the Computer Super Store. There is no government and no depreciation.

1. Chip maker sold $1,800,000 of components to the computer maker.
2. Computer Manufacturer produced 20000 computers, which it sold at $1500 each all to the Computer Super Store.
3. Sales at Computer Store amounted to $41 million, all of it sold to consumers (C), business (I) or exported (X), but they’re also left with $3000000 (IMPORTANT: Involuntary investment I in their own business) worth of computers in the inventory.
4. The costs incurred by all of country X business were as follows:

	Chip, mother board makers	Computer maker (Dell)	Computer super store
Wages	$1,000,000	$6,000,000	$4,500,000
Interest	400,000	2,000,000	200,000
Rent	200,000	2,500,000	1,000,000
Purchases	0	1,800,000	30,000,000

1. The GDP from expenditure approach (C+I+G+(X-M)) is ___________________________
2. The GDP from the income approach is _________________________. Don’t forget profits made as compensation for risk taking, management, etc.
3. The GDP from the value-added approach is _________________________

4. An example of intermediate goods for the furniture store is ____________________________

Answer 1

The GDP from expenditure approach is 41(consumption expenditure)+inventory investment (3).+ 1800000 (true investment)+(3 million computer sellers )= 47.8 million dollars.

The GDP from income approach is the sum total of all values in the all rows and columns in the table above:- it sum total of 47.8 million dollars.

The GDP from value added approach is similar to the expenditure approach here it will be= 41+3+3+1.8 million dollars.

One example of intermediate good is mother board and chip.