3. (20 points, true story, made up numbers) You're a senior economist work-

ing at the IMF (making $200,000 USD, tax free), and you have just been

told you have to fly to a country on the cusp of a civil war for two weeks to

review Article 4 mission. Once you get there you realize they have

not constructed GDP. The economy is under an embargo with no trade

or foreign financial flows. You get the below data based on agricultural,

manufacturing and retail sectors. As soon as you get all the data, tanks

roll up to your hotel and UN officials evacuate you out the back door to

the airport and you fly back to D.C.. Once back you calculate and report

GDP for your Article 4 report using the following data:

Agricultural sector

Total Output

$60.0

Wages

$15.0

Interest on Loan

$1.5

Indirect Taxes

$4.5

Manufacturing sector

Total Output

$90.0

Cost of agricultural goods

$36.0

Wages

$12.0

Indirect Taxes

$9.0

Government (Military)

Tax Revenue

$16.5

Wages

$16.5

Consumers

Wage Income

$43.5

Interest Income

$1.5

Profits

$72.0

Taxes

$3.0

(a) Calculate GDP based on the expenditure method.

(b) Calculate GDP based on the income method.

(c) Calculate GDP based on the value added method