Question
3) The table below shows both incomes and expenditures. a. If Gross Domestic Product is $3,400 Billion using the Income Method. Calculate the level of
3) The table below shows both incomes and expenditures.
a. If Gross Domestic Product is $3,400 Billion using the Income Method. Calculate the level of Investment. (Show your calculations). (4 Marks)
| Government expenditures on goods and service | $700 B |
| Wages, salaries, and supplementary labour income | $1,700 B |
| Depreciation | $450 B |
| Investment | ? |
| Consumption expenditure | $1,950 B |
| Net exports (X-M) | $200 B |
| Indirect taxes less subsidies | $350 B |
| Profit | $500 B |
| Rent and Interest | $400 B |
| Statistical discrepancy | 0 |
(b) Explain how real GDP and nominal GDP differ. Why is it important to calculate real GDP? (3 Marks)
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An Introduction To Statistical Methods And Data Analysis
Authors: R. Lyman Ott, Micheal T. Longnecker
7th Edition
1305269470, 978-1305465527, 1305465520, 978-1305269477
