Machines are capital goods and are thus an investment by the firm. There are three ways to define GDP: Expenditure approach: The final products in this economy are cars and machines (which are capital goods); steel, and tires are intermediate products. So Consumption (of cars) is 5000. Of this amount, 1000 is exported (NX), so 4000 must be consumed domestically (C). Machines are capital goods and are thus an investment by the car firm. Hence I is 2000. There is no information about G, so we must assume it is zero. so GDP is 5000 + 2000= 7000 Production approach (value added approach). The value added by a firm is obtained by subtracting the value of intermediate products from the transaction value (i.e. sales value of its product). The steel and tire producer are assumed to have no intermediates and so their value added is 4000 and 500. the machine producer sells the machine at 2000 but uses 1000 worth of steel in production. Therefore, its value added is 2000 - 1000 = 1000. The car producer sells its output at 5000 but its intermediates are steel worth 3000 and tires worth 500. Thus its value added is 1500. Aggregating the value added by each firm gives, 4000 + 500 +1000 + 1500 = 7000. Income approach. Firms ultimately distribute their revenue back to households through factor payments (e.g. wages, profits etc). Thus the money left after firms pay for their intermediate goods is ALL paid to households as wages, profits and so on. Thus value of the income paid by a firm equals the value added. So aggregating the factor payments by each firm (i.e. household incomes) will still equal 7000. Note that the above explanation gives you all the information you need to complete the table you mentioned.