In a simple model with no government and no investment, saving suppose that aggregate output consist of 100 items that have a market price of $2 per unit. The cost of producing this output consist to wages $120, interest $35 rent,$20 and profit $25.

a.Find the value of nominal output by the earning or income approach.

b. Find the value national output by the expenditure approach.

i. The market value of national output equals wages $120 +interest $35+ rent $20+ interest +profit $25=$200