(a) Use either the expenditure approach or the income approach to calculate the following national income statistics based on the data given in Table 1. Calculate the net domestic product (NDP), The following table shows some national accounting data for a given year for a hypothetical country.Table 1 National Accounting Data ($billions)Capital depreciation$950 (billions)Change in business inventory50Compensation of employees5000Corporate profit800Durable goods600Exports200Factor payments from the rest of the world360Factor payments to the rest of the world300Farm income300Gross private domestic investment1000Government spending800Imports150Net interest600Non-durable goods2000Non-farm income700Proprietors' income1000Rental income100Services4000

NDP (Net Domestic Product): It refers to the measurement of the economics output. It is the account…

Answered: Calculate the net domestic product…

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Calculate the net domestic product (NDP),

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

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Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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Question

(a) Use either the expenditure approach or the income approach to calculate the following national income statistics based on the data given in Table 1.

Calculate the net domestic product (NDP),

The following table shows some national accounting data for a given year for a hypothetical country.
Table 1 National Accounting Data ($billions)
Capital depreciation
$950 (billions)
Change in business inventory
50
Compensation of employees
5000
Corporate profit
800
Durable goods
600
Exports
200
Factor payments from the rest of the world
360
Factor payments to the rest of the world
300
Farm income
300
Gross private domestic investment
1000
Government spending
800
Imports
150
Net interest
600
Non-durable goods
2000
Non-farm income
700
Proprietors' income
1000
Rental income
100
Services
4000

Definition Definition Monetary value of all goods and services produced in an economy during a financial year. National income also refers to the total income earned by the factors of production during a financial year.

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