Using the following national income accounting data compute (a) GDP, and (b) NDP
ID: 1188442 • Letter: U
Question
Using the following national income accounting data compute (a) GDP, and (b) NDP, and NI. (use the Expenditures Approach) All figures are in billions.
Compensation of Employees
194.2
U.S. exports of good and services
17.8
Consumption of Fixed Capital
11.8
Government purchases
59.4
Taxes on production and imports
14.4
Net private domestic investment
52.1
Transfer payments
13.9
U.S. imports of goods and services
16.5
Personal taxes
40.5
Net foreign factor income
2.2
Personal consumption expenditures
219.1
Statistical discrepancy
0
Compensation of Employees
194.2
U.S. exports of good and services
17.8
Consumption of Fixed Capital
11.8
Government purchases
59.4
Taxes on production and imports
14.4
Net private domestic investment
52.1
Transfer payments
13.9
U.S. imports of goods and services
16.5
Personal taxes
40.5
Net foreign factor income
2.2
Personal consumption expenditures
219.1
Statistical discrepancy
0
Explanation / Answer
xxx-Wages, Salaries,... -$194.2C=+Personal coms--------$219.1
I=+Capital depreciation-$11.8
I=+Net Investment----------$52.1
G=+Government purch-----$59.4
Ex=+Canadian exports ----$17.8
Im=-Canadian imports----$16.5
Y=C+I+G+Ex-Im=
=219.1+11.8+52.1+59.4+17.8-16.5 =
=$343.7 Billions
xxx-Wages, Salaries,... -$194.2 - shouldn't be counted, it's part counted then you use income-side approach.
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