|
Item
|
Amount
(millions
of dollars)
|
|
Wages paid
|
100
|
|
Consumption expenditure
|
120
|
|
Taxes
|
40
|
|
Transfer payments
|
15
|
|
Profits
|
35
|
|
Investment
|
30
|
|
Government expenditure
|
50
|
|
Exports
|
30
|
|
Imports
|
40
|
The table above shows the transaction in Pinkland last year:
a) Calculate
Pinkland's GDP.
b) What
approach did you use to make this calculation?
#Parkin #11edition #GDP #Chapter21
Answer:
ReplyDeletea) GDP = C + I + G + (X - M) = $120 + $30 + $50 + ($30 - $40) = $190 million.
b) The expenditure approach is used, which measures GDP as C + I + G + (X - M).