Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Rethinking Macroeconomics

Authors: John F McDonald

2nd Edition

1000434699, 9781000434699

More Books

Students also viewed these Economics questions

Question

What was the first language you learned to speak?

Answered: 1 week ago

Question

3. What is my goal?

Answered: 1 week ago

Question

2. I try to be as logical as possible

Answered: 1 week ago