Compute the contributions to gdp of these transactions

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Reference no: EM1321705

Q. could you say please the answer of the problem:

ABC Computer Company has a $20,000,000 factory in Silicon Valley. During the current yr ABC builds $2,000,000 worth of computer components. ABC's costs are worker, $1,000,000; interest on debt, $100,000; also taxes, $200,000. ABC sells all its output to XYZ Supercomputer. Utilizing ABC's components, XYZ builds four supercomputers at a cost of $800,000 each ($500,000 worth of components, $200,000 in worker costs also $100,000 in taxes per computer). XYZ has a $30,000,000 factory. XYZ sells four supercomputers for $1,000,000 each. Compute the contributions to GDP of these transactions, showing that expenditure also income approaches give the same answer. Please, make sure that you elucidate your answers.

Reference no: EM1321705

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