Given the following national income data, compute the GDP, GNP, NDP, & NI. All f

Question

Given the following national income data, compute the GDP, GNP, NDP, & NI. All figures are in billions

Comsumtion of Employees ------------------------$400

Imports ----------------------------------------------$10

Net Investment--------------------------------------$20

Government Purchases-----------------------------$100

Exports-----------------------------------------------$20

Capital consumption allowance--------------------$20

indirect Business taxes-----------------------------$5

Net foreign factor income earned in the U.S----$10

Explanation / Answer

GDP=Consumpion+Exports-Imports+Government Purchases+Net Investment

therefore GDP=400+20-10+100+5+20 billlions=$ 530 billion

GNP=GDP+Net factor income earned from abroad=535+10=$ 540 billion

NDP=GDP-Capital Consumption Allowance

therefore NDP=530-20=$ 510 billion

NI= GDP-indirect business taxes-Capital Comsumption Allowance+net factor income from abroad

therefore NI=$ 515 billion

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