Reference no: EM133130018

Imagine a closed economy in which two industries exist: Red and Blue. Inventories do not change 

Industry Red produced all machinery and intermediate inputs of this economy with total sales of 100. It paid 50 on wages, 20 on rent and 15 on interest.  

Industry Blue produced consumption goods only. It paid 80 in wages, 30 in interest, 25 in rent and it made a profit of 10. 

We want to estimate GPP. What approach or combination of approaches to Planet Accounting do we need to do this accurately? 

1. The expenditure approach
2. The income approach
3. Both the expenditure approach and the income approach
4. Both the production approach and the income approach