Calculating National Economic Accounts Current Values ($) Catego $60 $6 $15 $60

Question

Calculating National Economic Accounts Current Values ($) Catego $60 $6 $15 $60 $840 $57 Net Investment Compensation received by non-residents Compensation paid to non-residents Exports Personal Income (PY) Personal Savings Government Expenditures on final goods and services Gross Investment Investment in business inventories Investment income received by Canadians from non-residents Interest and Misc. Investment Income Imports Indirect Tax less Subsidies Total Personal Taxes Investment income paid to non-residents (foreigners) $285 $141 $18 $9 $27 $45 $48 $78 $39 Calculate the following a) Consumption b) Depreciation c) Net Exports (NX) d) GDP e) GNP f) Final Domestic Demand (FDD) g) Net Domestic Income (NDY) at basic prices

Explanation / Answer

Answer:

a)Consumption

Consumption (c) = personal income – personal taxes – personal savings

C= $840 - $78 - $ 57

= 840 – 135

= $705

b)Depreciation

Depreciation = gross investment – net investment

= $141 - $ 60

Depreciation = $81

c)Net exports (NX)

NX = exports – imports

= $60 - $45

NX = $15

d)GDP

GDP = consumption + gross investment + government expenditure + NX

= $705 + $141 + $285 + $15

GDP = $1146

e) GNP

GNP = GDP – net factor income from abroad (NFIA)

NFIA = (compensation received by non –residents - compensation paid to non – residents ) + (investment income received by Canadian non- residents – investment income paid to non - residents)

= ($6 - $15) + ($9 - $39)

= - $9 - $30

NFIA = - $39

GNP = $1146 + (- $39)

= $1107

f) Final Domestic Demand (FDD)   

FDD= consumption + gross investment + government expenditure

= $705 + $141 + $285

= $1,131

g) Net domestic income (NDY) at basic prices(factor cost)

NNP = GNP – depreciation

= $1107 - $81

NNP= $1026

*hope the answer will help. if you have any confusion feel free to ask

Thank you    

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