Assume an economy with a coalproducer, a steelproducer, and some consumers.(There is nogovernment.) In a givenyear, the coal producer produces 20 million tonnes of coal and sells it for $4 per tonne. The coal producer pays $70 million in wages to consumers. The steel producer uses 50 million tonnes of coal as an input into steelproduction, all purchased at $4 per tonne. Ofthis, 20 million tonnes of coal comes from the domestic coalproducer, and 30 million tonnes is imported. The steel producer produces 13 million tonnes of steel and sells it for $20 per tonne. Domestic consumers buy 9 million tonnes ofsteel, and 4 million tonnes are exported. The steel producer pays consumers $40 million in wages. All profits made by domestic producers are distributed to domestic consumers.

a. Determine GDP using(i) the product approach, (ii) the expenditure approach, and(iii) the income approach.

(i) Using the productapproach, the value added

by the coal producer is $(put answer here) million, the value added by the steel producer is $((put answer here)) million, and GDP in this economy is $(put answer here) million.

(ii) Using the expenditureapproach, C=$(put answer here) million, I=$(put answer here) million, G=$(put answer here)million, NX=$(put answer here) million, and GDP in this economy is $(put answer here) million.

(iii) Using the incomeapproach, profits for the coal producer are $(put answer here) million, profits for the steel producer are $(put answer here) million, total wages are $(put answer here)million, and GDP in this economy is $(put answer here) million.

b. The current account surplus

is $(put answer here) million.

c. GNP in this economy is $(put answer here)

million.

In the case where the coal producer is owned byforeigners, so that the profits of the domestic coal producer go to foreigners and are not distributed to domesticconsumers, GDP is $((put answer here)) million.

In the case where the coal producer is owned byforeigners, so that the profits of the domestic coal producer go to foreigners and are not distributed to domesticconsumers, GNP is $(put answer here) million.