Question

Items 2018

Gross domestic product 20,658.20

Gross national product 20,913.30

Net national product 3,297.70

National income 17,659.30

Personal income 17,644.50

Write a report in your own words (1 page, double-spaced), which contains the analysis of the results you received. In this report consider, but do not be limited to the following:

1. What is the difference between gross domestic product (GDP) and gross national product (GNP)? What is the difference in what GDP measures compared to GNP?

2. Based on the table, what calculations must you make to determine GNP from GDP?

3. What is national income (NI)? What does NI measure?

4. Which was higher in this year, GNP or NI? By how much?

5. What calculations must you make to determine NI from GNP?

6. NI is composed of a number of categories. What category makes up the largest portion of NI?

7. Please analyze and discuss the significance of the data that you received for this Data exercise. Reflect on what you have learned from this exercise.

Answer 1

Answer:-

1. Create the table that contains the following information for the last year quarterly. Omit the intermediate lines found in Table 1.7.5 on the web site

Tables ofGross Domestic Product, Gross national product , Net National Product, National Income, and Personal Income

: (Billions of dollar)

	2016 (Quarter I)	2016(QuarterII)	2016 (Quarter III)	2016 (Quarter IV)
GDP	18,281.6	18,450.1	18,675.3	18,869.4
GNP	18,454.2	18,657.9	18,879.3	19,112.4
Net National Product	15,580.6	15,756.2	15,957.6	16,167.7
National Income	15,844.9	15,990.1	16,262.3	16,310.8
Personal Income	15,740.1	15,929.4	16,111.1	16,166.2

Answer2

2.

GNP = GDP + Export - Import

Thus, GDP is the money value of all goods and services produced in a given year. On the contrary, the GNP includes the the net value of export and import. In case, the export is more than the import, the oreeig trae has increasing effect on development. But, in case the import is more than the export, then the net effect is negative. Here, there is drain of national resources.

Based on the table, what calculations must you make to determine GNP from GDP?

- In order to compute the GNP we add the income receipts from the rest of the world and subtract the income receipts to the rest of the world. (Here, we shall add the net export value to the GDP for arriving at GNP.)

What is national income (NI)? What does NI measure?

-National Income is the total value of all new goods and services produced in a given year. It is GNP less the depreciation of fixed capital.

Which was higher in this year, GNP or NI? By how much?

-This year, the GNP was higher than the NI. The difference was $2,801.6 billion

What calculations must you make to determine NI from GNP?

We first calculate the Net national Product, and thereafter subtract the depreciation to get the NI.

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NI is composed of a number of categories. What category makes up the largest portion of NI?

- The largest portion of NI