Answer:
The GDP via the expenditure and income approach is $13,700 and $9,800 respectively
Explanation:
The computation of GDP via Expenditure approach is shown below:
GDP = Consumption Expenditure + Investment expenditure + Government spending + net export ( export - import)
In brief,
= Consumption of non-durable goods + Consumption of services + Consumption of durable goods + capital consumption allowances + Gross private domestic investment + taxes, imports and misc. adjustments + Government spending + Export -Import
= ($3,000 + $4,000 + $1,000 + $1,500) + ($2,000) + ($800 + $2,000) + ($1,200 - $1,800)
= $9,500 + $2,000 +$2,800 - 600
= $13,700
The computation of GDP via Income method is shown below:
GDP = Corporate profits + Proprietors income + net interest + compensation of employees + rental income
= $1,200 + $900 + $550 + $7,000 + $150
= $9,800