Question
Theoden King wants to know the total value of output (GDP) in Rohan in 3019 (Third Age). He demands that Wormtongue provide this information. Wormtongue
Theoden King wants to know the total value of output (GDP) in Rohan in 3019 (Third Age). He demands that Wormtongue provide this information. Wormtongue gives him the following statistics for the year, but claims not to be able to determine GDP.
Consumption expenditures $ 1,750
Edors government purchases of goods and services 200
Westfold and Helm's Deep government purchases (local) 331
Proprietors income 150
Compensation of employees 1,680
Corporate profits 188
Corporate profit taxes 23
Rental income 31
Capital consumption allowance (depreciation) 295
Indirect business taxes 146
Net interest 147
Exports to Gondor and Mirkwood 299
Imports from Saruman and Rivendell 355
Undistributed corporate profits 111
Transfer payments 66
Personal taxes 45 Social Security taxes (Social Insurance taxes)
Net foreign income from and to the rest of Middle Earth 0
Statistical discrepancy 0
a) What is national income for Rohan in 3019? Show your formula.
b) What is personal income for Rohan in 3019? Show your formula.
c) What is disposable personal income for Rohan in 3019? Show your formula.
d) Is Wormtongue correct or lying to Theoden? If correct, explain why he can't answer Theoden's question. If lying, what is GDP for 3019? Show your formula
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