Reference no: EM133124396
In 2030 in the country FARMLAND , there are three residents: The Farmer, The Miller, and The Baker. The residents of FARMLAND import and export goods to and from INDUSTRIALLAND and MARKETLAND. Use the following (i)-(iv) to answer parts a-f.
(i) The Farmer grows wheat which they sell to the Miller for $3,000
(ii) The Miller uses the wheat they purchased from the Farmer to ground $7,000 worth of flour. They sell $4,000 of the flour to the Baker and they sell $3,000 of the flour to residents of MARKETLAND.
(iii) The Baker uses the flour to bake $17,000 worth of bread. $10,000 worth of the bread is sold to residents of Breadland and $7,000 worth of the bread is exported to INDUSTRIALLAND.
(iv) The residents of FARMLAND purchase $5,000 worth of carrots to consume from MARKETLAND.
(iv) The baker wants to expand their business and buys a new $6,000 oven which they import from INDUSTRIAL LAND.
(iv) The Farmer , The Miller, and The Baker each pay $500 in taxes to the government of FARMLAND , which then pays the Baker $3,000 to build a road.
Please answer the following questions:
-What is total consumption (personal expenditures) in FARMLAND ?
-What is total business investment in FARMLAND?
-What are total government expenditures in FARMLAND ?
-What are total exports in FARMLAND ?
-What are total imports FARMLAND ?
-Calculate GDP in FARMLAND?