GDP CALCULATION: small test

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GDP CALCULATION: small test Copyright Mark Van Couwenberghe, 2017 Welcome to Woodland! 3 companies generate the GDP of this small economy: tree-growing business A, sawmill B and furniture factory C. A imports seeds at a value of 1.000.000 euro. They sell trees to consumers (2.500.000 euro) and to the sawmill (17.500.000 euro). 1.000 workers, each earning 10.000 euro per year. B sells all the wood to C: turnover = 70.000.000 euro. Salary cost = 30.000.000 euro. C imports paint at a value of 10.000.000 euro. Consumers buy furniture at a value of 65.000.000 euro and the neighbour country buys furniture at a value of 105.000.000 euro. 3.000 workers, each earning 20.000 euro per year. Calculate GDP using 3 approaches