Using the following national income accounting data, compute (a) GDP, (b) NDP, a
ID: 1240730 • Letter: U
Question
Using the following national income accounting data, compute (a) GDP, (b) NDP, and (c) NI. All figures are in billions.Category
Value
Compensation of employees
$196.2
U.S. exports of goods and services
19.8
Consumption of fixed capital
11.8
Government purchases
59.4
Taxes on production and imports
14.4
Net private domestic investment
52.1
Transfer payments
13.9
U.S. imports of goods and services
16.5
Personal taxes
40.5
Net foreign income
2.2
Personal consumption expenditures
219.1
Statistical discrepancy
0.0
Instructions: Round your answers to one decimal place.
a. GDP = $ billion
b. NDP = $ billion
c. National Income = $ billion
Explanation / Answer
GDP = personal consumption + gross investment + government consumption + net exports of goods and services and NDP = Consumption + Government Expenditures + Investment +Exports - Imports - Depreciation National Income = G.D.P. + Net Domestic Income from Abroad (i.e. income from exports.) from these GDP =333.9 NDP=126.6 NI=333.9+2.2=335.9 cheers :)
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