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6. In country A, which is a closed economy, there are 150 households. 120 of these households work in the private market producing strawberries (a

6. In country A, which is a closed economy, there are 150 households. 120 of these households work in the private market producing strawberries (a perishable good) and 30 are Navy Seals and work for the government. Annual gross (that is, before taxes) salaries are all $1 per household, both for the strawberry pickers and the Navy Seals. The government taxes households to pay for their military (Navy Seals) expenses.

(a) How much is total GDP in country A?

(b) How is GDP split among its three different uses?

(c) If all these 150 households pay the same amount of taxes each and the govern- ment's budget is balanced, how much taxes is each household paying?

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