our question:

Subject: Macroeconomics

Course: ECON 202

Suppose we have a simple economy with three producers: a flower producer, a cotton producer, and a clothing producer.

The flower producer grows and sells $1100 worth of flowers as a final good to consumers, using no intermediate inputs in the production process. The flower producer pays their workers $700 in wages and pays $100 in taxes to the government.

The cotton producer sells all its cotton, valued at $1000, to the clothing producer. The cotton producer also uses no intermediate inputs in the production process but pays their workers $400 in wages and pays $200 in taxes to the government.

The clothing manufacturer purchases all the cotton so the firm can produce clothing as a final good. It sells $1000 worth of clothing to domestic consumers, $600 dollars of clothing to the government, exports $1000 worth of clothing abroad, and stores $400 of clothing in inventory. The clothing producer pays its workers $1000 in wages and pays $300 in taxes to the government.

1. Using the expenditure approach, calculate the total consumption in the economy.

2. Using the expenditure approach, calculate the total investment in the economy.

3. Using the expenditure approach, calculate the total government expenditure in the economy.

4. Using the expenditure approach, calculate the export expenditure in the economy.

5. Using the expenditure approach, calculate the import expenditure in the economy.

6. Using the value-added approach, calculate the value-added for the flower producer.

7. Using the value-added approach, calculate the value-added for the cotton producer.

8. Using the value-added approach, calculate the value-added for the clothing producer.

9. Using the expenditure and value-added approach results in what value for final GDP in the economy?