3 This year the transactions in Colombia were 600 300 200 20

3.- This year the transactions in Colombia were 600 300 200 20 300 SALARIES INTAKE DEPRECIATION INTEREST RATE INVESTMENT GOVERNMENT SPENDING350 SAVINGS IMPORTAION EXPORTATION DIRECT SUBSIDIES 100 50 50 32 . Calulate GDP by spending approach:

Solution

GDP = C + I + G + X - M

Where C is consumption = intake = 300

I = Investment = 300

G = government spending = 350

E = Exportation = 50

and

M = Importation = 50

Thus

GDP = 300 + 300+ 350 + 50 -50 = 950

GDP is 950 through expenditure method.