Question

If during 2019, the country of Sildavia recorded a GDP of $65 billion, interest payments of $15 billion, imports of $13 billion, profits of $7 billion, exports of $15 billion, and rent of $7 billion, wages during 2019 in Sildavia were ____.

Answer 1

$36 billion

Step-by-step explanation:

The formula to compute the GDP under the income approach is shown below:

GDP = Interest payments + profits + rent + wages

$65 billion = $15 billion + $7 billion + $7 billion + wages

$65 billion = $29 billion + wages

So, the wages equal to

= $65 billion - $29 billion

= $36 billion

The net exports or exports less imports values are ignored under the income approach as this are used under the expenditure approach