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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