The table below includes data for a one-year period required to calculate GDP from the income side for a teeny-tiny economy. TABLE 20-4 Refer to Table 20-4.What is the value of GDP,as calculated from the income side?

Question

The table below includes data for a one-year period required to calculate GDP from the income side for a teeny-tiny economy.  TABLE 20-4 Refer to Table 20-4.What is the value of GDP,as calculated from the income side?

Quizplus · Accepted Answer

We can calculate GDP from the income side by adding up all the income generated in the economy during the year. This includes wages, interest, rent, and profits. In this table, we see that wages are $500, interest is $200, rent is $300, and profits are $1285.20. Adding all these up, we get GDP = $2285.20. Therefore, the correct answer is (D) $2285.20.

The Table Below Includes Data for a One-Year Period Required