1 - The following set of information refer to economic activities undertaken in the country of Ploteca in 2020:

*The total value of consumption was $4 billion, a quarter of which were of goods initially produced in 2019. As well, $0.8 billion of the total $4 billion were bought by foreigners living in Ploteca.

*$1 billion worth of housing stock was sold, 20% of which was made up of existing housing stock.

*Wages totalled $0.1 billion.

$0.3 billion was spent by firms on new machinery.

*The government also transferred $0.1 billion to various charities as a gesture of goodwill. It paid out $0.02 billion in agent fees to ensure the money went to the proper recipients.

*Ploteca is a closed economy.

*Use the expenditure method only when answering the questions below.

1(a)- What was the value of consumption in Ploteca is 2020? Explain how you obtained this value (i.e. what did you count, and what did you exclude).

1(b)- What was the value of investment in Ploteca in 2020? Explain how you obtained this value (i.e. what did you count, and what did you exclude).

1(c)- What was the value of government expenditure in Ploteca in 2020? Explain how you obtained this value (i.e. what did you count, and what did you exclude).

1(d)- Calculate Ploteca's GDP in 2020 using the expenditure method.

2 - The standard of living in Luxembourg is higher than the standard of living in Iceland as the size of Luxembourg's nominal GDP (using current USD) in 2019 was estimated at $71.1 billion as opposed to Iceland's $24.2 billion in the same period (figures from the World Development Index Database). Do you agree or disagree with this statement? Explain your answer and provide real world evidence to justify your answer.