2.Consider the following data on the Pittsburgh economy:

Healthcare Providers

Revenues:

- Sales of healthcare services to domestic households: $90 million

- Sales of healthcare services to foreign households: $30 million

Costs:

- Wages: $50 million

- Rent: $10 million

- Purchase of medical diagnostic machine: $10 million (imported from Cleveland, a foreign city)

- Purchase of diagnostic software: $20 million

- Interest payments: $5 million

- Dividends: $ 15 million

- Medical protective equipment: $10 million (imported from Boston, a foreign city)

Tech Companies

Revenues:

- Sales of diagnostic software: $20 million

- Sales of online advertising services to financial corporations: $17 million

- Sales of subscription-based video streaming service to domestic households: $25 million

Costs:

- Wages: $42 million

- Rent: $5 million

- Sales Taxes: $5 million

- Purchase of computers: $5 million (imported from Hong Kong, a foreign city)

- Purchase of corporate financial services: $5 million

Self-Driving Cars Manufacturing Plant

Revenues:

- Sales of self-driving cars to foreign consumers: $50 million

- Sales of self-driving cars to domestic consumers: $12 million

New Inventory:

- Self-driving cars: $8 million

Costs:

- Wages: $23 million

- Purchase of online advertising services from tech companies: $7 million

- Purchase of corporate financial services: $3 million

- Purchase of car parts: $10 million (imported from Detroit, a foreign city)

- Dividends: $17 million

Financial Services Industry

Revenues:

- Sales of retail financial services to domestic households: $60 million

- Sales of retail financial services to foreign households: $20 million

- Sales of corporate financial services to domestic tech companies: $8 million

Costs:

- Wages: $63 million

- Dividends: $10 million

- Purchase of online advertising services: $10 million

- Sales Taxes: $5 million

Local Government: Provision of Educational Services

Revenues:

- Taxes: $10 million

Costs:

- Teachers wages: $9 million

- Pencils: $1 million (imported from Boise, a foreign city)

Hint:

*The pencils purchased by the local government are used up in the production of the educational

services.

*The new inventory produced (i.e. what is produced but not sold) constitutes part of Net Operating Profits. Why? Shareholders instead of receiving cash payment in the form of dividend

(which would have resulted from the sale of the cars), own the inventory of the firm.

Now answer the following questions:

a) Determine GDP using the production approach.

i. What is value added of the Healthcare Providers?--------

ii. What is the value added of the Tech Companies?---------

iii. What is the value added of the Financial Services Industries?--------

iv. What is the value added of the Self-Driving Cars Manufacturing Plant?------

v. What is the value added of the Government?--------

vi. Based on the previous calculations, what is the value of the GDP?-------

(b) Determine GDP using the expenditure approach.

i. What is the value of consumer expenditures?-----------

ii. What is the value of investment?------------------

iii. What is the value of government spending?-------------

iv. What is the value of net exports?

v. Based on the previous calculations, what is the value of the GDP?--------------

(c) Determine GDP using the income approach.

i. What is the value of wage and salary income?--------

ii. What is value of net operating surplus?---------

iii. What is the value of depreciation?---------

iv. What is the value of taxes on production (paid to government)?--------

v. Based on the previous calculations, what is the value of the GDP?------