The following outline provides a complete description of all economic activity in Ecoland for the year 2010:
a. The Jones family bought a newly constructed home worth $150,000,
b. The Jones family sold their old house for $100,000 and paid 10% in commission to the real estate agent,
c. People spent in $300,000 on food and $100,000 in restaurants,
d. Consumers bought 8 new cars for $20,000 each,
e. Household sold 10 old cars for $5,000 each,
f. Companies spent $90,000 on new machinery and equipment,
g. Teachers in public schools were paid $250,000,
h. Households bought stocks worth $150,000 and paid 5% in fees to brokers,
i. Companies were left with $100,000 worth of goods and services, which were put into inventories at the end of the year,
j. Companies exported $800,000 worth of goods services,
k. The government paid $220,000 in Social Security benefits,
l. Companies imported $300,000 worth of goods and services.
1. Calculate the contribution to each category of expenditure that would be the result of each of the transactions from above. All underlying work must be shown.

1. Consumption =

2. Investment =

3. Government Purchases =

4. Exports =

5. Imports =

2. Calculate Ecoland GDP in the year 2010 using the expenditure approach

GDP =\n.

Answer rating: 100% (QA)

Answer 1 Expenditure on house Cost of new house Sale proceeds of ol... View the full answer