The following table contains some information from the national income and produ

Question

The following table contains some information from the national income and product accounts of a small country. All data are in billion dollars Category Value 300.00 1,230 45.00 150.00 820.00 Receipts of Factor Income from the Rest of the World43.00 180.00 0.00 160.00 40.00 250.00 10.00 Government Consumption and Gross Investment National Income Depreciation Exports Compensation of Employees Net Investment Inventory Adjustment Imports Payments of Factor Income to the Rest of the World Corporate Profits Statistical Discrepanc For this country: NNP equals Sbillion. (Enter your response as an integer) GNP equals Sbillion. (Enter your response as an integer) GDP equals Sbillion. (Enter your response as an integer) Personal Consumption Expenditure equals $billion. (Enter your response as an integer)

Explanation / Answer

Part a

National Income = NNP - Indirect Taxes + Subsidies

1,230 = NNP - 0 + 0

NNP = $ 1,230 Billion

Part b

NNP = GNP - Depreciation

1,230 = GNP - 45

GNP = 1,230 + 45

GNP = $ 1,275 Billion

Part c

GNP = GDP + NFIA

NFIA = Factor income from the rest of the world - Factor income to the rest of the world = 43 - 40 = $ 3 Billion

1,275 = GDP + 3

GDP = $ 1,272 Billion

Part d

From the Expenditure method,

GDP = Personal Consumption Expenditure + Government Consumption + Gross Investment + Net Exports

Net Exports = Exports - Imports = 150 - 160 = $ - 10 Billion

1,272 = Personal Consumption Expenditure + 300 - 10

1,272 - 290 = Personal Consumption Expenditure

Personal Consumption Expenditure = $ 982 Billion

Hope it solves your doubts :-)

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