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a simple economy, suppose that all income is either compensation of employees or profits. Suppose also that there are indirect taxes. Calculate gross domestic product
a simple economy, suppose that all income is either compensation of employees or profits. Suppose also that there are indirect taxes. Calculate gross domestic product for the following set numbers. Show that the expenditure approach and income approach add up to the same figure
Consumption$ 9,500
Investment$ 3,000
Depreciation$ 1,750
Profits$ 2,400
Exports$ 850
Compensation of employees$ 11,500
Government Purchases$ 3,200
Direct taxes$ 1,200
Saving$ 1,600
Imports900
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