a) Value added = value of sales - value of intermediate goods
firm A = $4200 - $0 = $4200
firm B = $ 9000 - $4200 = $ 4800
firm C = $21,500 - $9000 = $12,500
b ) total sales by all firms = sales A +. sales B + sales C
= $4200 + $9000 + $21,500
$34,700
c ) Value found in part b is not the gdp as there double counting of value of ores and steel , as these values are included in the value of car also .
d ) GDP using product approach = value added by firm A + value added by firm b + value added by firm C
= $4200 + $4800 + $12,500
= $21,500
e) GDP using expenditure method takes into account only the expenditure on final value of goods and services .
Since goods by firm A and B are intermediate goods , there expenditure will not be included in GDP calculation.
so GDP according to expenditure approach = expenditure on cars by consumers = $21,500
f ) GDP using income approach = (total wages + total rent +total profit + total interest ) by all 3 firms
= 15,700 + 1000 + 2200 + 2600
= $21,500
g) value of GDP by all three methods is same .
rm Firm B Firm C Values of Sales Intermediate goods Wages Interests payment:s Rent Profit $4,200...