Question
Consider an economy with two companies (Intel and Dell) and consumers. Intel manu- factures processors used in Dell's laptops. In 2022, Intel produces 2000 processors
Consider an economy with two companies (Intel and Dell) and consumers. Intel manu- factures processors used in Dell's laptops. In 2022, Intel produces 2000 processors and sells each at $200. The cost of labor to produce these processors is $150,000 Meanwhile, Dell produces 6000 laptops and sells each for $300. Dell pays $400,000 in wages to its workers. To produce the laptops, Dell buys 2000 processors from Intel and imports 4000 processors from a foreign company, TSM, at a price of $200 each. Domestic consumers purchase 5000 of Dell's laptops, with the remainder being exported. Calculate the GDP of this economy using the three methods we discussed in class (i) expenditure method (ii) output or value-added method (iii) income method
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