Posted by
**Tonya** on
.

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?