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
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