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In a simple economy suppose that all income is either compensation of employees or profits. Suppose also that there are no indirect taxes. Calculate gross domestic product from the following set of numbers. Show that the expenditure approach and the income approach add up to the same figure.
Consumption $ 5,000Ivestment 1,000Depreciation 600Profits 900Exports 500Compensation of employees 5,300Government purchases 1,000Saving 1,100Imports 700
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