How gdp measured by the value added approach

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Reference no: EM1352347

Suppose a Canadian company exports all of its $7 M worth of its output to the US. It imports $1 M worth of raw material from Mexico, pays its workers $3 M in wages, pays its creditors $2 M in interest, and retains $1 M in profits for its owners. This company's operations add $6 M to Canadian GDP whether measured by the value added approach, the expenditure approach, or the income approach.

Reference no: EM1352347

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