Suppose GDP for 2009 was $1,500,wages and salaries were $800,rent payments were $200,consumption was $1000,and interest payments were $200.What must the value of profits have been?

Question

Quizplus · Accepted Answer

To find the value of profits, we use the formula: GDP = Wages + Rent + Interest + Profits + Consumption. Rearranging gives Profits = GDP - (Wages + Rent + Interest + Consumption). Substituting the given values: Profits = $1,500 - ($800 + $200 + $200 + $1000) = $300.

Suppose GDP for 2009 Was $1,500,wages and Salaries Were $800,rent