Worksheet 10.2: Three Approaches to GDP You are given the following information about the economy of Smalltown. Smalltown's economy only has three industries manufacturing products made using rock from the nearby quarry. Henry builds block homes and uses no other materials. Abby sells aggregate rock that goes into the production process and Billy sells the blocks that Henry uses in his homes for sale. Abby's Henry's Billy's Total Aggregates Houses Block Factor Income Value of sales $100,000 $40,000 Intermediate goods 0 40,000 Wages 1 1,000 30,000 10,000 Interest payments 1,500 2.000 1,500 Rent 1,000 500 Profit 7,000 8,000 Total expenditures by $20,000 $100,000 40,000 firm Value added per firm $60,000 1. Fill in the missing entries in the table above by measuring the value of the production of final goods and services produced in Smalltown. 2. Calculate the value of Smalltown's GDP using the value added approach. Explain. 3. Calculate the value of Smalltown's GDP using the factor income approach. Explain