Using the national income data in the table below to compute the following: 1. G
ID: 1258412 • Letter: U
Question
Using the national income data in the table below to compute the following: 1. GDP 2. NDP 3. NI
Nattional Income Accountingd Data Amount Compensation of employees $288.2 US exports of goods and services 63.4 Consumption of fixed capital 23.6 Government purchases 188.8 Taxes on production and imports 28.8 Net private domestic investments 104.2 Transfer payments 27.8 US imports of goods and services 33.0 Personal Taxes 81 Net foreign factor income 4.4 Personal consumption expenditures 438.2 Statistical discrepancy 0Explanation / Answer
(a)
GDP = Personal consumption expenditure + Net private domestic investment + Government purchases + Exports of goods & services - Imports of goods & services
= 438.2 + 104.2 + 188.8 + 63.4 - 33
= 761.6 ($ billion)
(b)
NDP = GDP - Depreciation (Which is also known as Consumption of fixed capital)
= 761.6 - 23.6
= 738 ($ billion)
(c)
NI ($ billion) = NDP + Net foreign factor income (Factor income from abroad – factor income to abroad)
= 738 + 4.4
= 742.2 ($ billion)
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.