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please do it in 10 minutes will upvote Assume an economy in which there are two producers (coconut producer and restaurant), consumers, and the government.
please do it in 10 minutes will upvote
Assume an economy in which there are two producers (coconut producer and restaurant), consumers, and the government. Coconut producers harvest 6 million coconuts a year and sell them for $2 each. They sell 3 million to the restaurant and 3 million to the consumers. They spend $5 million on wages. They owe $1 million on interest on loans to consumers. Finally, they spend $2 million in taxes. The restaurant sells $20 million in meals. It spends $4 million in wages. Finally, it pays $3 million in taxes. The government runs the army. It pays $6 million in wages. In addition to the wage income and interest on loans, consumers receive all profits from production. They also pay $1m in taxes. Calculate GDP with the three different approaches taught in classStep by Step Solution
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