Here is a list of domestic output and national income figures for a certain year

Question

Here is a list of domestic output and national income figures for a certain year. All figures are in billions. The questions that follow ask you determine the major national income measures by both the expenditures and the income approaches, The results you obtain with different methods should be the same. C. Adjust NI as required to obtain the PI.Personal consumption expenditures $245 Net foreign factor income $4 Transfer payments $12 Rents $14 Statistical discrepancy $8 Consumption of fixed capital (depreciated) $27 Social Security contribution $20 Interest $ 13 Proprietors

Explanation / Answer

Calculation of National Income from GDP: National Income = G.D.P. + Net Domestic Income from Abroad (i.e. income from exports.) Calculation of National income from GNP: Gross national product inludes the incomes from the country's enterprises even outside its domestic territories. So the method to be employed is similar.

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