Suppose a country’s GDP equals $500 billion for a particular year. Economists in the country estimate...
Suppose a country’s GDP equals $500 billion for a particular year. Economists in the country estimate that household production equals 40% of GDP.
a. What is the value of the country’s household production for that year?
b. Counting both GDP and household production, what is the country’s total output for the year?
**please show detail work or excel formulas.
Homework Answers
A)value of household Production = 40% of GDP
= .4*500
= $ 200 billion
B)total output for the year = GDP +household Production
= 500 + 200
= $ 700 billion
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