Check Your Understanding

114

  1. Question

    Explain why the three methods of calculating GDP produce the same estimate of GDP.

  2. Question

    Identify each of the sectors to which firms make sales. What are the various ways in which households are linked with other sectors of the economy?

  3. Question

    Consider Figure 10.3. Explain why it would be incorrect to calculate total value added as $30,500, the sum of the sales price of a car and a car’s worth of steel.