GDP_Calculation.xlsx

	A	B	C	D	E	F	G	H	I
1
2	Assumptions
3	Closed economy
4	No Investment
5	No taxes, subsidies
6
7	Scenario-1
8
9	Entity	Sells What	Sells to	Entity Revenue	Entity Cost	Entity Profit	Wages(80%)	Profit (20%)	Value Added
10	Farmer	Wheat	Miller	100	0	100	80	20	100
11	Miller	Flour	Baker	150	100	50	40	10	50
12	Baker	Bread	Household	200	150	100	80	20	100
13	Baker	Bread	Govt	50	150	100	80	20	100
14
15
16
17	Expenditure Method
18	GDP = C + I + G
19
20	Consumption Expenditure
21		Household	200	buying bread
22	Govt Expenditure
23		Govt	50	buying bread
24	Investment
25		None
26	GDP		250
27
28
29	Value Added Method
30
31	Farmer	100
32	Miller	50
33	Baker	100
34	GDP	250
35
36	Income Method
37		Wages	Profit
38	Farmer	80	20	100
39	Miller	40	10	50
40	Baker	80	20	100
41	GDP			250
42
43
44	Scenario-2
45
46	Entity	Sells What	Sells to	Entity Revenue	Entity Cost	Entity Profit	Wages(80%)	Profit (20%)	Value Added
47	Farmer	Wheat	Miller	100	0	150	120	30	150
48	Farmer	Wheat	Govt	50	0	150	120	30	150
49	Miller	Flour	Baker	150	100	50	40	10	50
50	Baker	Bread	Household	200	150	100	80	20	100
51	Baker	Bread	Govt	50	150	100	80	20	100
52
53
54	Expenditure Method
55	GDP = C+I+G
56
57	Consumption Expenditure
58		Household	200	buying bread
59	Govt Expenditure
60		Govt	100	buying bread, wheat
61	Investment
62		None
63	GDP		300
64
65
66	Value Added Method
67
68	Farmer	150
69	Miller	50
70	Baker	100
71	GDP	300
72
73	Income Method
74		Wages	Profit
75	Farmer	120	30	150
76	Miller	40	10	50
77	Baker	80	20	100
78	GDP			300
79
80	Subsidy introduced
81	Scenario-3
82
83	Entity	Sells What	Sells to	Entity Revenue	Entity Cost	Entity Profit	Wages(80%)	Profit (20%)	Value Added
84	Farmer	Wheat	Miller	100	0	150 (200)	120 (160)	30 (40)	150
85	Farmer	Wheat	Govt	50	0
86	Farmer	Recieve Subsidy from	Govt	0 (50 subsidy)	0
87	Miller	Flour	Baker	150	100	50	40	10	50
88	Baker	Bread	Household	200	150	100	80	20	100
89	Baker	Bread	Govt	50	150	100	80	20	100
90
91
92	Expenditure Method
93	GDP = C+I+G
94
95	Consumption Expenditure
96		Household	200	buying bread
97	Govt Expenditure
98		Govt	100	buying bread, wheat
99	Investment
100		None