Use the table GROSS PRIVATE DOMESTIC INVESTMENT: 120 billion DEPRECIATION: 35 bi

Question

Use the table

GROSS PRIVATE DOMESTIC INVESTMENT: 120 billion
DEPRECIATION: 35 billion
EXPORTS: 60 billion
IMPORTS: 55 billion
GOVERNMENT PURCHASES: 130 billion
CONSUMPTION:325 billion
INDIRECT BUSINESS TAXES: 20 billion
CORPORATE PROFITS AND FICA CONTRIBUTIONS: 70 billion
TRANSFER PAYMENTS AND OTHER INCOME: 65 billion
EMPLOYEE COMPENSATION: 385 billion
PERSONAL TAXES: 90
PROFITS: 80 billion
RENTAL INCOME: 25 billion
NET INTEREST: 35 billion

Using the above table, calculate GDP using the expenditure approach. THE GDP IS ?

Explanation / Answer

So National Income here is probably Net National Income which is GDP + Net foreign factor income - indirect taxes - depreciation. GDP (from the previous question I answered for you) Is GPDI+(Exports-Imports)+Government Purchases+Consumption which summed to 570B. I don't really see where Net Foreign Factor Income comes in on this table, so we can ignore it. But Indirect business taxes (20B) and Depreciation (35B) Sum to 55B. Subtract this from the GDP of 570B and you get that the Net National Income is 515 Billion dollars

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