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    JA MacroEcon GDP 2

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    mobinil1
    This document describes an economy that produces three goods: X, Y, and Z. It states that the value added of X is $100 million, total production of Y is $40 million, and total production of Z is $80 million. It also notes that half of good Y, worth $20 million, is used as intermediate input to produce good Z. The total value added of the economy is calculated as $100 million + $20 million + $80 million = $200 million.

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    JA MacroEcon GDP 2

    Uploaded by

    mobinil1
    12 views1 page
    This document describes an economy that produces three goods: X, Y, and Z. It states that the value added of X is $100 million, total production of Y is $40 million, and total production of Z is $80 million. It also notes that half of good Y, worth $20 million, is used as intermediate input to produce good Z. The total value added of the economy is calculated as $100 million + $20 million + $80 million = $200 million.

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    This document describes an economy that produces three goods: X, Y, and Z. It states that the value added of X is $100 million, total production of Y is $40 million, and total production of Z is $80 million. It also notes that half of good Y, worth $20 million, is used as intermediate input to produce good Z. The total value added of the economy is calculated as $100 million + $20 million + $80 million = $200 million.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    12 views1 page

    JA MacroEcon GDP 2

    Uploaded by

    mobinil1
    This document describes an economy that produces three goods: X, Y, and Z. It states that the value added of X is $100 million, total production of Y is $40 million, and total production of Z is $80 million. It also notes that half of good Y, worth $20 million, is used as intermediate input to produce good Z. The total value added of the economy is calculated as $100 million + $20 million + $80 million = $200 million.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 1

    Q3: Three kind of goods are produced in an economy (X,Y,Z).

    The value added in the


    production of X is 100 millions, the total production of Y is 40 millions and the total
    production of Z is 80 millions. The only intermediate good is that one half of the goods Y
    are used as inputs to produce the goods Z. Then the total value added in this economy is (in
    millions)

    Value Added in the production of X = 100 millions

    Total Production of Y = 40 millions (Half of those is an intermediate good), therfore

    Value Added in the production of Y = 40/2 = 20 million

    Value Added in the production of Z = 80 millions

    Total Value Added = 100 + 20 + 80

    = 200 millions

    Q4: In the economy of Talikastan in 2015, exports were $200, GDP was $2000, government
    purchases were $200, imports were $270, and investment was $500. What was Talikastan’s
    consumption (in $) in 2015?

    Y = C + I + G + NX

    $2,000 = C + $500 +$200 + ($200 - $270)

    $2,000 = C + $630

    C = $2,000 - $630

    C = $1,370

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