Suppose an economy produces steel, wheat, and oil. The steel industry produces $120,000 in revenue, spends $14,000 on oil, $12,000 on wheat, pays workers $85,000. The wheat industry produces $160,000 in revenue, spends $23,000 on oil, $12,000 on steel, and pays workers $95,000. The oil industry produces $220,000 in revenue, spends $45,000 on wheat, $35,000 on steel, and pays workers $110,000. There is no government. There are neither exports nor imports, and none of the industries accumulate or de-accumulate inventories. Calculate GDP using the production and income methods.

Suppose an economy produces steel, wheat, and oil. The steel industry produces $120,000 in revenue, spends $14,000 on oil, $12,000 on wheat, pays workers $85,000. The wheat industry produces $160,000 in revenue, spends $23,000 on oil, $12,000 on steel, and pays workers $95,000. The oil industry produces $220,000 in revenue, spends $45,000 on wheat, $35,000 on steel, and pays workers $110,000. There is no government. There are neither exports nor imports, and none of the industries accumulate or de-accumulate inventories. Calculate GDP using the production and income methods.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Production And Growth

Section: Chapter Questions

Problem 5CQQ

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