Unformatted text preview: Firm 3 bought $4 million worth of lumber from the rest of the world. Firm 3 sold all of its furniture to households in the economy. Firm 1 Firm 2 Firm 3 Total Value of Sales $12 million $48 million $81 million Intermediate Goods $0 Wages $6 million $20 million $30 million Interest Payments $3 million $10 million $4 million Rent $2 million $7 million $12 million Profit $1 million $5 million $7 million Total Expenditure by Firm Value Added per Firm Give and explain the three methods of calculating Gross Domestic Product (GDP). Calculate GDP for this economy using all three methods. Show work clearly....
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- Winter '09
- Economics, Value added, National accounts, Firm Firm, Intermediate Goods Wages, Profit Total Expenditure, Firm Value Added