February 22, 2017

Homework Help: macroeconomics

Posted by Tonya on Friday, April 4, 2008 at 9:55pm.

Show that the expenditure approach and the income approach add up to the same figure:

consumption $5000
investment $1000
depreciation $600
Profits $900
Exports $500
Compensation of Employees $5,300
Government purchases $1000
Direct Taxes $800
Saving $1100
Imports $700

How do we know that calculating GDP by the expenditure approach yields the same answer as calculating GDP by the income approach?

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