Question: Do we get the same GDP using two different methods? An economy produces 1,000,000 automobiles valued at $15,000 each. Of these, 700,000 are sold to
Do we get the same GDP using two different methods?
An economy produces 1,000,000 automobiles valued at $15,000 each. Of these, 700,000 are sold to consumers, 200,000 are sold to businesses, 50,000 are sold to the government, and 25,000 are sold abroad. No automobiles are imported. The automobiles left unsold at the end of the year are held in inventory by the auto producers. Find GDP in terms of (a)
the market value of production and
(b) the components of expenditure. You should get the same answer both ways.
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