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Unformatted text preview: Gross private domestic investments 1700 Imports 900 Profits/rents/interest 1500 Depreciation 600 Income taxes 1000 Employee compensation (wages) 6100 Govt purchases 1300 Exports 400 Y = CIGX-M = 6000 + 1700 + 1300 + 400 + 900 = 8500 Income = 6100 + 300 + 1500 + 600 = 8500 (wages, indirect taxes, profits, income taxes) 6) jane doe sells her home that was originally built in 1970 for 350,000. she has to pay 5% in fees to the real estate agent who arranged the sale. How much if any, of this transaction would be counted in GDP? Only the cost of the service will be counted to GDP. Thats because the house was produced in 1970. Timber should not be included because its an intermediate good....
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This note was uploaded on 04/18/2008 for the course ECON 2 taught by Professor Kuntal during the Spring '08 term at UCSC.
- Spring '08