The following table shows macroeconomic data for a hypothetical country. All fig

Question

The following table shows macroeconomic data for a hypothetical country. All figures are in billions of dollars Billions of Dollars Investment Depreciation Exports Imports Government purchases Consumption Indirect business taxes and misc. items $1,341 Income received from other countries$1,118 Income paid to other countries Employee compensation Corporate profits Rental income Net interest Proprietors' income $2,300 $1,987 $3,120 $200 $4,521 $6,300 $1,022 $8,174 $1,895 $365 $903 $1,343 If you calculate GDP by adding together the final demands of consumers, business firms, the government, and foreigners (i.e., using the expenditure approach), GDP for this economy isS national product, obtained when GDP is measured using the expenditure approach, is $ billion. Given this information, the statistical discrepancy between national income and net billion

Explanation / Answer

GDP for this economy = Consumption+Investments+Government Purchases+Exports-Imports

= 6300+2300+4521+3120-200

= $16041 billion

NI= NNP-Indirect business taxes

NNP = GNP -Depreciation

GNP = GDP+Income received from other countries-Income paid to other countries

= 16041+1118-1022

= 16137

NNP = 16137-1987=14150

NI = 14150-1341=12809

Statistical discrepancy = NNP-NI = 14150-12809 = $1341 billion

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