Consider a closed economy in which there is one firm which uses two inputs to produce the one final good in the economy. The firm uses its capital (100 units) and rents labor to produce 35 units of output. The firm pays out 25 units of this output in wages. The rest of the output is used by the firm as an investment to offset the 10 units of its capital stock that crumbled during the period. The firm's accountants write down in their books that depreciation is 10 units of output. Since depreciation plus the payment to labor equals output the firm reports an accounting profit of zero. The consumers in the economy use their wages to consume 25 units of output. Find the GDP for this economy using (a) the value added approach, (b) the income approach and (c) the expenditure approach.

2. Consider a closed economy in which there is one rm which uses two inputs to produce the one nal good in the economy. The rm uses its capital (100 units) and rents labor to produce 35 units of output. The rm pays out 25 units of this output in wages. The rest of the output is used by the rm as an investment to oset the 10 units of its capital stock that crumbled during the period. The rm's accountants write down in their books that depreciation is 10 units of output. Since depreciation plus the payment to labor equals output the rm reports an accounting prot of zero. The consumers in the economy use their wages to consume 25 units of output. Find the GDP for this economy using (a) the value added approach, (b) the income approach and (c) the expenditure approach