This paper circulates around the core theme of What is the GDP for this economy together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
There are three firms in an economy: X,Y and Z. Firm X buys $200 worth of goods from firm Y and $300 worth of goods from firm Z, and produces 250 units of output at $4 per unit. Firm Y buys $150 worth of goods from firm X, and $250 worth of goods from firm Z, and produces 300 units of output at $6 per unit. Firm Z buys $75 worth of goods from X, and $50 worth of goods from firm Y, and produces 300 units at $2 per unit. All other products are sold to consumers. Answer the following:
i. What is the GDP for this economy?
ii. How much government revenue would a value added tax of 10% generate? explain
iii. How much revenue would a 10% sales tax on final output generate? explain.
