Question

Aa Aa 2. Comparing the expenditure and value-added approaches for calculating GDP The expenditure and value-added approaches for calculating GDP arrive at the same final number, but they calculate that number in different ways. To illustrate this, think about the effects of the transactions in the following story about GDP: Akshay pays Better Buy $1,000 to install a new high-definition television (HDTV) on his living room wall. He's attracted by Better Buy's guarantee that he'll be happy with the new HDTV, or he'll get his money back Better Buy pays Firedog $700 to install the HDTV Firedog buys hardware worth $150 from The Home Station Assume that The Home Station gets the hardware for essentially nothing and that other costs are $ To compute the contribution to GDP using the expenditure approach, you have to add the amount of money spent by buyers on final goods and services. Which of the following would be included in the expenditure method of calculating GDP? Check all that apply Akshay spends $1,000 Better Buy spends $700 Firedog spends $150 The total contribution to GDP, measured by the expenditure method, is $150 $1,700 $700 $550 Now use the following table to compute the contributions to GDP for thi In particular, indicate the cost of intermediate goods and the value add ng the value-added approach $1,000 9e of production $1,850

Answer 1

Volve, added Cn 0 ga 200 300 100 寸여al Producto