Suppose you are given the following data on incomes and expenditures for the economy of Canada in current prices for factors of production and outputs.
Consumption expenditures: 2,000
Wages: 2,100
Government expenditure: 900
Net indirect taxes: 400
Exports: 1,100
Interest, rent, and profits: 1,000
Net Investment expenditure: 700
Imports: 1,200
Depreciation/CCA: 300
a. What is the value of nominal GDP measured by the expenditure approach?
b. What is the implicit assumption made to ensure that adding expenditures will provide the value of output? Give one example of this assumption being violated.
c. What is net domestic income at factor cost?
d. What is the value of nominal NDP at market prices?
e. What is the nominal value of GDP measured by the income approach?
f. What is the implicit assumption made to ensure that adding factor incomes will provide the value of output? Give one example of this assumption being violated.
g. What is the value of real GDP if the GDP deflator is 120?