PS 2 - Econ 101 Problem Set 2 Jinmao Xu 4715033 TA Witham...

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Econ 101 Jinmao Xu Problem Set 2 4715033 TA: Witham Problem 1 Part 1. Compute GDP by production approach: For the phone company: All the services that the company produced is $14,000 ; For the car factory: All the goods that the car factory produced is 15×$2,000 =$30,000 ; &The intermediate good is $1,000 (spends on local and long distance services to the phone company) For the government: The police officer produced his effort to the community(work for the government), and get paid for $1,000 . GDP (Production Approach) = $14,000 + ($30,000 - $1,000) + $1,000 = $44,000 . Compute GDP by expenditure approach: For the phone company: The phone company produced $14,000 services to the community, and $1,000 was consumed by the car factory, so the remaining $13,000 was consumed by consumers. The investment for the phone company $2,000 in which the company spent on a car used for repair service. For the car factory:
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This note was uploaded on 08/08/2011 for the course ECON 101 taught by Professor Dumbass during the Spring '08 term at UCSB.

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PS 2 - Econ 101 Problem Set 2 Jinmao Xu 4715033 TA Witham...

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