Question
Show that the expenditure approach and the income approach add up to the same figure:
consumption $5000
investment $1000
depreciation $600
Profits $900
Exports $500
Compensation of Employees $5,300
Government purchases $1000
Direct Taxes $800
Saving $1100
Imports $700
How do we know that calculating GDP by the expenditure approach yields the same answer as calculating GDP by the income approach?
consumption $5000
investment $1000
depreciation $600
Profits $900
Exports $500
Compensation of Employees $5,300
Government purchases $1000
Direct Taxes $800
Saving $1100
Imports $700
How do we know that calculating GDP by the expenditure approach yields the same answer as calculating GDP by the income approach?
Answers
Kofi
No idea.
Kofi
Please help me to solve it.