1. 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 euro. They sell trees to consumers ( euro) and to the sawmill ( euro) workers, each earning euro per year.
B sells all the wood to C: turnover = euro.
Salary cost = euro.
C imports paint at a value of euro. Consumers buy furniture at a value of euro and the neighbour country buys furniture at a value of euro workers, each earning euro per year.
Calculate GDP using 3 approaches