Question

Question 2 Consider the following partial information from the national income and product accounts data for the state of Kiribati. Item $ 000 Item $'000 Depreciation ......... 105 Social security payments ............... 238 Wages... 1239 Indirect business taxes..... 371 Corporate profits ... 161 Gross private domestic investment 595 Personal taxes 392 Rental income ......... 21 Proprietor's income 168 Imports ................. Consumption .......... 1377 Net interest Exports ........... 133 Factor income paid abroad.............. Government purchases 448 22 Factor income received from abroad ECO 9740 Fundamentals of Macroeconomics (a.) Using the expenditure approach, calculate Kiribati's gross domestic product (GDP). [8] [b. Using the income approach, calculate Kiribati's gross domestic product (GDP). [12]

Answer 1

The solutions of the problem are solved below -

a) Expenditure porsach: GDP = Powiate consumption + government Expenditere + Gross Investment + Net Enport = 1377+448+595+ (133-147) GDP = $2406 6) Income Apperwach GDP = wages + Proprietor Income + Corporate profits & Social security Payment + Rental Inacome + Interest tDepreciation = 1239 + 168 + 161 +238 +21 +320+ los GDP = $ 2252 Shot on realme 3