Please help in following question: Personal consumptionexpenditures 200(billion)

Question

Please help in following question: Personal consumptionexpenditures        200(billion) Personaltaxes                                        50 Exports                                                   30 Depreciation                                           10 Govtpurchases                                       50 Gross private domesticinvestment          40 Imports                                                  40 Govt transferpayments                            20 a) What is the value of GDP? b) What is the value of net domestic product? c) What is the value of net investment? d) What is the value of net exports? Please help in following question: Personal consumptionexpenditures        200(billion) Personaltaxes                                        50 Exports                                                   30 Depreciation                                           10 Govtpurchases                                       50 Gross private domesticinvestment          40 Imports                                                  40 Govt transferpayments                            20 a) What is the value of GDP? b) What is the value of net domestic product? c) What is the value of net investment? d) What is the value of net exports?

Explanation / Answer

Personal Consumtion expenditures 200 (billion) Personal taxes 50 Exports 30 Depreciation 10 Govt Purchases 50 Gross Private Domestic Investment 40 Imports 40 Govt Transfer Payments 20 (a) Gross Dometic Product(GDP) = C + I + G + (X - M) C = Household Consumptionexpenditure / Personal Consumption Expenditure I = Gross Private DomesticInvestment G = Government Consumption and GrossInvestment Expenditures X = Gross Exports of Goods andServices M = Gross Imports of Goods andServices GDP = 200 + 40 + (50+20) + (30 - 40) GDP = 300 Gross Domestic Product (GDP) = 300 (b) Net Domestic Product (NDP) = GDP -Depreciation of Capital            NDP = 300 -10 = 290 Net Domestic Product (NDP) = 290 ( c) Value of Net Investment = 40 (d) Net Exports = Total Exports - TotalImports      Net Exports = 30 - 40      Net Exports = -10 Personal Consumtion expenditures 200 (billion) Personal taxes 50 Exports 30 Depreciation 10 Govt Purchases 50 Gross Private Domestic Investment 40 Imports 40 Govt Transfer Payments 20 (a) Gross Dometic Product(GDP) = C + I + G + (X - M) C = Household Consumptionexpenditure / Personal Consumption Expenditure I = Gross Private DomesticInvestment G = Government Consumption and GrossInvestment Expenditures X = Gross Exports of Goods andServices M = Gross Imports of Goods andServices GDP = 200 + 40 + (50+20) + (30 - 40) GDP = 300 Gross Domestic Product (GDP) = 300 (b) Net Domestic Product (NDP) = GDP -Depreciation of Capital            NDP = 300 -10 = 290 Net Domestic Product (NDP) = 290 ( c) Value of Net Investment = 40 (d) Net Exports = Total Exports - TotalImports      Net Exports = 30 - 40      Net Exports = -10

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