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A toy company produced 1000 toys and sold 800 toys. Among the 800 toys sold, 600 were sold domestically and 200 were exported. The domestic

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A toy company produced 1000 toys and sold 800 toys. Among the 800 toys sold, 600 were sold domestically and 200 were exported. The domestic price of a toy was $20 and the export price was $30. At the beginning of the year, the company had an inventory of 300 toys. Inventory is valued at the average of the domestic and export prices. The toy company acquired a new software for designing toys. The software, which the company paid $5000, was developed and sold by a foreign company. A foreign citizen, Shirley, has been living in Country A for several years. She acquired an apartment a few years ago. Since she lived in her own apartment, she did not pay any rent to any landlord during the year. The imputed annual rent of her own apartment is $10000. The government paid an unemployment benefit of $2000 to Sam, who was unemployed during the year. The payment was financed by tax revenue. i) Explain how each of the expenditure components of GDP, C,I,G, X (export), and M (import), was affected by the above items. (15 points) i) Find the nominal GDP. Suppose that the GDP deflator is 120. What is the real GDP? (4 points)

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