# How to calculate GDP from raw data

See attached file for full problem description.

2. The following outline provides a complete description of all economic activity in Trivialand for 2004. Draw up versions of Tables 3 and 4 for Trivialand showing GDP computed in two different ways.
I. There are thousands of farmers but only two big business firms in Trivialand: Specific Motors(an auto company) and Super Duper (a chain of food markets). There s no government and no depreciation.
II. Specific Motors produced 1,000 small cars, which it sold at \$6,000 each, and 100 trucks, which it sold at \$8000 each. Consumers bought 800 of the cars, and the remaining 200 cars were exported to the United States. Super Duper bought all the trucks.
III. Sales at Super Duper markets amounted to \$14 million, all of it sold to consumers.
IV. All farmers in Trivialand are self-employed and sell all of their wares to Super Duper.
V. The costs incurred by all of Trivialand’s businesses were as follows:

Specific Motors Super Duper Farmers
Wages \$3,800,000 \$4,500,000 \$0
Interest 100,000 200,000 700,000
Rent 200,000 1,000,000 2,000,000
Purchases 7,000,000 0
Of food 0

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