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The following national income is in billions of dollars: consumption of fixed ca

ID: 1193734 • Letter: T

Question

The following national income is in billions of dollars:

consumption of fixed capital $25

gov purchases 315

us imports 260

personal taxes 45

trasfer payments 247

us exports 249

personal consuption expenditures 475

net foreign factor income 5

gross private domestic investment 300

taxes on production and import 245

undistributed corp profits 60

social security contributions 240

corporate income taxes 65

statistical discrepancy 40

Net domestic product equal ? Please breka it down for me, for some reason it's not coming up for me. Thank you,

Explanation / Answer

One can calculate NATIONAL INCOME(GDP) by adding all expenditures of the economy, known as expenditure method.

Net Domestic product= Gross domestic product-depreciation

NDP through expenditure method = Government purchase + consumption expenditure + investment+export-import-depreciation

NDP = 315+475+300+249-260-25

NDP = $1054