The transactions in Ecolandia last year were: EXERCISE 1: Salaries paid to work 800,000 Consumption expense 600,000 Taxes 250,000 Transfers 50,000 Benefits 200,000 Investment 250,000 Government purchases 200,000 Exports 300,000 Savings 300,000 Imports 250,000

a. Ecolandia's GDP for the previous year was 2,850,000. It is determined by wages, consumption, taxes, transfers, profits, investment, government purchases, exports, and imports. This includes government spending on goods and services, such as the military and education.

b. To perform these calculations, the expenditure approach was used.

c. Savings totaling $300,000 and transfers totaling $50,000 were used to finance the business.

EXERCISE 2: Highland transactions last year were: Salaries paid to work 400,000 Consumption expense 350,000 Net taxes 125,000 Investment 150,000 Government purchases 130,000 Exports 120,000 Savings 135,000 Imports 140,000

a. GDP = 400,000 + 350,000 + 125,000 + 150,000 + 130,000 + 120,000 + 135,000 - 140,000 = 1,265,000

b. An expense-based approach

C. The use of one's savings to finance investments.

CALCULATE: a. Calculate GDP b. Did you use the expense approach or the income approach to make these calculations? c. How is the investment financed?

EXERCISE 3: Measurement of the Gross Domestic Product (GDP) in relation to spending and income: Solve the following exercises according to the information requested. You have to carry out all the steps to solve the GDP and place the base formula in all the exercises. Results alone will not be accepted.

Values of PIB	ID PIB	Millions of Dollars
Personal consumption expenses		41
Government Expenditures on Goods and Serv.		29
Net Taxes		32
Private investment		20
Imports of goods and services		40
Exports of goods and services		50

a. Identify the elements that make up GDP b. Calculate the value of GDP c. Calculate the value of net exports