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The following is a hypothetical series of numbers representing expenditure and income figures related to U.S. GDP: Personal consumption expenditures......2349 Net foreign income earned in

The following is a hypothetical series of numbers representing expenditure and income figures related to U.S. GDP:

  • Personal consumption expenditures......2349
  • Net foreign income earned in the U.S......118.32
  • Net exports........................................................ -348
  • Depreciation on fixed capital (Calculated by dividing depreciable amount over number of years. In this case 2,000 over 10 years)
  • Govt. purchases are 1/8th the value of personal consumption
  • Aggregate Wages................................................876
  • Rents.........................................................................453
  • Investment is 3/8ths of Aggregate Wages
  • Interest.....................................................................900
  • Properietor (non corporate) income................12
  • Corporate profits are 5% of Aggregate Wages
  • Indirect Business Taxes.........................................20

Applying both the Expenditure and Income Approaches, calculate hypothetical Gross Domestic Product.In essence, total "expenditures" should " = " "total income." For simplicity we'll assume numbers are in the millions.

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