Q.
Illustrate how GDP can be calculated with the following events in your country.
Extracted from Khan Academy at www.khanacademy.org.
A.
1. Khan Academy paid $100k for a new software to engineer - investment expenditure by Firm to improve future revenue. Thus, $100k.
2. Accenture got paid $10m by California for building IT System - investment expenditure by Government to improve future performance. Thus, $10m.
3. Old house sold to foreigner - no production, if new house it is export. Thus, 0.
4. Buy Japanese lawnmower $200 - Consumption expenditure but nothing is made in the country, it is imported. Thus, Import -$200 + $200 Household Consumption = 0.
5. Buy new house $500k - Household consumption or Firm Investment. More likely Investment as it is for improvement of future condition. Thus, $500k.
6. American Airline paid for Airbus from Europe $100m - Investment expenditure but nothing is made in the country, it is imported. Thus, Import -$100m + Investment $100m = 0.
Aggregate = $100k + $10m + $500k = $10,600k.
Ref:
Own account with video from https://www.khanacademy.org/economics-finance-domain/macroeconomics/gdp-topic/GDP-components-tutorial/v/examples-of-accounting-for-gdp