Question

******** . ................598 vuviai ILUNI Anu rivuuvo RUVUURIL Goverment Purchases of goods and services.... ..$580 Indirect business taxes. ..$230 Personal consumption expenditures.. $1,520 Depreciation. ..$310 Proprietors' income..... $175 Employer contribution to public and private pensio ...$325 Net interest...... Gross private domestic investment. -$410 Rental income. $45 Exports.......... .......... ...$450 Imports............. $260 Corporate profits...... $225 Wages and salaries.......... Social secyrity payroll taxes. ... ...................$235 Government transfer payments to indivduals............ ..$300 Personal interest and dividends and business transfers to individuals........$340 Personal taxes. $325 Receipts of foreign income.. ...........$75 Payments of income to foreigners.. .............$65 ...... ................ . .... ......... . . ........ ...... *********** * ** * . .......... .......5 $1,302 1 .30 2 .......... a. Using the expenditures side of GDP. determine CDP. b. Using the income side of GDP, Determine GDP. c. Net private domestic investment d. Net exports= e. National income- f. Personal income g. Disposable income=

Answer 1

a.

The GDP can be defined the market value of all goods and services which are produced in the domestic territory of the country in the current financial years.

GDP by expenditure method=C+I+G+X-M

=1,520+410+580+450-260

=$2,440

b.

GDP at MP by income method= wages and salaries+ rent+ interest+ Corporate profit+ Proprietor income+ Depreciation+ indirect business tax

=1302+45+98+225+175+310+230

=$2,385

c.

Net private domestic investment=Gross private domestic investment – depreciation

=410-310

=$100

d.

Net export=X-M

=450-260

=$190