Whatis the difference between expenditure and income approaches to GDP calculation? Based on this explanation and the information given below, calculate GDP using expenditure and income approaches. Show detailed calculations!

National Income =$18 trillion; Imports =$2.5 trillion; Government Spending =$6.5 trillion; Investment =$5 trillion; Statistical discrepancy =$0.5 trillion; Depreciation =$3 trillion; Factor income receipts from rest of the world =$1.5 trillion; Consumption

=$10 trillion; Exports =$2 trillion; Factor income payments to rest of the world =$1 trillion;

True/False

1Sincethe value of the balanced budget multiplier is equal to one, the simultaneous increase in lump-sum taxes and government spending by the same amount will not have an effect on the equilibrium level of total aggregate output.

2Governmentpayments of Social Security, Medicare and Medicaid benefits must be included when calculating GDP using expenditure approach.

3Thesize of the government spending multiplier is normally smaller than the size of the tax multiplier, because the latter affects the equilibrium level of total aggregate output indirectly through consumption.

4Whencalculating GDP using the income approach, the income earned by the foreign citizens working in the country must be subtracted since it is not a part of national income, and the income earned by the country's citizens working abroad must be added, because it is a part of national income.