I really need someone to answer this question for me with the way to solve it typed. It will be greatly appreciated. My exam is tomorrow.
Say in an economy there are only 2 companies. Company A and Company B. A imports 800$ of fertilizer to produce 6000$ of oranges. A sells to public 2000$ worth of oranges, and exports 1000$ worth of oranges. It sells the rest to Company B. A also pays 1000$ salaries, 300$ taxes, 300$ rent.
Company B uses the oranges it bought from A to produce 10,000$ worth of orange juice. It sold 6500$ of orange juice to public. It exported 2000$ worth of juice, and stored the rest. Comp B pays 2200$ salries, 1800$ interest, and 500$taxes.
Find the GDP using :
the expenditure approach (Y = Consumption + investment + govt spending+ net exports)
the income approach: (Y=wages+interest+rent+profit+taxes) - NFI which is the Net Factor Income
Say in an economy there are only 2 companies. Company A and Company B. A imports 800$ of fertilizer to produce 6000$ of oranges. A sells to public 2000$ worth of oranges, and exports 1000$ worth of oranges. It sells the rest to Company B. A also pays 1000$ salaries, 300$ taxes, 300$ rent.
Company B uses the oranges it bought from A to produce 10,000$ worth of orange juice. It sold 6500$ of orange juice to public. It exported 2000$ worth of juice, and stored the rest. Comp B pays 2200$ salries, 1800$ interest, and 500$taxes.
Find the GDP using :
the expenditure approach (Y = Consumption + investment + govt spending+ net exports)
the income approach: (Y=wages+interest+rent+profit+taxes) - NFI which is the Net Factor Income
