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Plese type instead of hand-writing Assume an economy with two manufactur- ers: a parts and components manufacturer and a tablet manufacturer. Suppose that parts and

Plese type instead of hand-writing

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Assume an economy with two manufactur- ers: a parts and components manufacturer and a tablet manufacturer. Suppose that parts and components manufacturing does not require any intermediate inputs. In a given year, the parts and components manufacturer produces 50,000 units of parts and components, of which 45,000 units were sold to the tablet manufacturer at $100 per unit and the remaining units were stored as in- ventory. In the same year, the tablet manufacturer produces 25,000 tablets and sells all of them to consumers at $800 per unit. Compute GDP of this economy for the year using the product and expenditure approaches. Do the two approaches yield the same GDP? 3. Assume an economy where consumers buy all goods from an online store that allows trading rms to sell goods and consumers to sell second- hand goods. All sellers pay 30% of their sales to the store as hosting fees, of which 5% goes to tech- nicians as wages and another 5% goes to a logis- tics rm for delivery of the goods to consumers. In a given year, Trading Firm as sales revenue is $1 million, and Trading Firm B, which sells second- hand goods, receives sales revenue of $0.5 million. Trading Firm A does not employ any workers to produce or market the goods but pays 40% of its sales revenue to import the goods. Trading Firm B's revenue for the sale of second-hand goods covers the hosting fees and the cost of goods originally purchased in the past. The logistics rm pays 80% of the sales revenues to truck drivers as wages. Cal- culate the economy's GDP for the year using (a) the product approach, (b) the expenditure approach, and (c) the income approach

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