Answered step by step
Verified Expert Solution
Question
1 Approved Answer
In 2000 in Woodland, there are three residents: The Lumberjack, The Woodworker, and The Farmer. Use the following (i)-(v) to answer parts a-f. (i) The
In 2000 in Woodland, there are three residents: The Lumberjack, The Woodworker, and The Farmer. Use the following (i)-(v) to answer parts a-f. (i) The farmer grows $7,000 worth of carrots. She sells $5,000 worth of carrots to the residents of Woodland and exports $2,000 worth of carrots to Metalland (ii) The Lumberjack cuts down $4,000 worth of lumber which she sells to the Woodworker for $4,000. (iii) The Woodworker uses the $4,000 worth of lumber to make $13,000 worth of furniture. $8,000 worth of the furniture is sold to residents of Woodland and $5,000 worth of the furniture is exported to Metalland. (iv) The Farmer, the Lumberjack, and the Woodworker each pay $500 in taxes to the government, which then pays the Lumberjack $1,000 to build a road. (v) The Farmer wants to expand her business: She purchases a $2,000 shed from Metalland and pays the Lumberjack $1,000 to assemble it. Please answer the following questions: a. What is total consumption (personal expenditures) in Woodland? b. What is total business investment in Woodland? c. What are total government expenditures in Woodland
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started