The following table shows macroeconomic data for a hypothetical country. All figures are in billions of dollars. Billions of Dollars Gross private domestic investment $2,300 Depreciation $1,987 Exports $3,120 Imports $200 Government purchases of goods and services $4,521 Personal consumption expenditures $6,300 Indirect business taxes and misc. items $1,341 Income received from other countries $1,118 Income paid to other countries $1,022 Compensation of employees (wages) $8,174 Corporate profits $1,895 Rental income $365 Net interest $903 Proprietors’ income $1,343 If you calculate GDP by adding together the final demands of consumers, business firms, the government, and foreigners (i.e., using the expenditure approach), GDP for this economy is billion. Given this information, the statistical discrepancy between national income and net national product, obtained when GDP is measured using the expenditure approach, is billion.
The following table shows macroeconomic data for a hypothetical country. All figures are in billions of dollars. Billions of Dollars Gross private domestic investment $2,300 Depreciation $1,987 Exports $3,120 Imports $200 Government purchases of goods and services $4,521 Personal consumption expenditures $6,300 Indirect business taxes and misc. items $1,341 Income received from other countries $1,118 Income paid to other countries $1,022 Compensation of employees (wages) $8,174 Corporate profits $1,895 Rental income $365 Net interest $903 Proprietors’ income $1,343 If you calculate GDP by adding together the final demands of consumers, business firms, the government, and foreigners (i.e., using the expenditure approach), GDP for this economy is billion. Given this information, the statistical discrepancy between national income and net national product, obtained when GDP is measured using the expenditure approach, is billion.
Chapter4: The Aggregate Economy
Section: Chapter Questions
Problem 8E
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Question
The following table shows macroeconomic data for a hypothetical country. All figures are in billions of dollars.
Billions of Dollars
|
|
---|---|
Gross private domestic investment | $2,300 |
Depreciation | $1,987 |
Exports | $3,120 |
Imports | $200 |
Government purchases of goods and services | $4,521 |
Personal consumption expenditures | $6,300 |
Indirect business taxes and misc. items | $1,341 |
Income received from other countries | $1,118 |
Income paid to other countries | $1,022 |
Compensation of employees (wages) | $8,174 |
Corporate profits | $1,895 |
Rental income | $365 |
Net interest | $903 |
Proprietors’ income | $1,343 |
If you calculate GDP by adding together the final demands of consumers, business firms, the government, and foreigners (i.e., using the expenditure approach), GDP for this economy is billion.
Given this information, the statistical discrepancy between national income and net national product, obtained when GDP is measured using the expenditure approach, is billion.
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