Question
In the country of Hypothetica, we have the following information for the year 2015: *Consumption totalled $2 billion, but 25% of this total consisted of
In the country of Hypothetica, we have the following information for the year 2015:
*Consumption totalled $2 billion, but 25% of this total consisted of goods which were initially sold in 2014.
*A total of $250 million worth of new housing stock was sold.
*Labour wage income was $150 million.
*Businesses invested $100 million dollars in new capital (i.e. machinery) stock.
*Businesses also bought $200 million dollars' worth of company shares on the stock exchange.
*Foreigners with working visas living in foreign-only households bought $100 million worth of locally made goods and services.
*The government spent $500 million building roads.
*Hypothetica is a closed economy, thus they are no exports and imports.
Calculate and explain how you obtained the figure (i.e. what did you count, and what did you exclude) for Hypothetica's consumption in 2015
Calculate and explain how you obtained the figure (i.e. what did you count, and what did you exclude) for Hypothetica's investment in 2015
What was Hypothetica's GDP in 2015 using the expenditure method? Explain your answer
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