(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…

Business

Economics

Calculate the net domestic product (NDP),

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Using the incomes approach, calculate GDP at basic prices based on the numbers from this table: 1…

A: GDP stands for Gross Domestic Product. It is a commonly used economic indicator that measures the…

Q: Which of the following is not a method of calculating National Income? [A] Income method [B]…

A: National income accounting is a methodology for determining the aggregate economic activity of a…

Q: The expenditure approach to calculating GDP is best expressed by which of the following? A.)…

A: GDP measures the value of goods and services that are produced within the country during a specific…

Q: The link between gross domestic product (GDP) and national income (NI) is Select one from the…

A: National Income is the Net National Product at factor cost, that is, NNPFC. To reach at NNPFC from…

Q: Calculation of GDP using the income approach, the size of a country's national income will be equal…

A: GDP is the final value of goods and services produced in the economy during a given period of time…

Q: Approaches in relation to national income accounting?

A: National income measures the market value of goods and services produced in an economy in particular…

Q: All figures are in billions of dollars: Gross Private Domestic Investment 848.3 Proprietor's Income…

A: GDP = Compensation of employees + mixed income of self employed + operating surplus + depreciation +…

Q: The Income Approach calculates GDP with all of the following except: wages, interest, profits and…

A: The market value of all final goods and services produced in the economic territory of the country…

Q: The following table reports 2018 transactions that occurred in the United States. Prices in 2018 and…

A: GDP is the market value of domestically produced final goods and services produced in a given period…

Q: How has government expenditure in France throughout the period for which data is available in the…

A: The gross domestic expenditure of France is showing a downtrend. The gross domestic expenditure was…

Q: national income accounts for the U.S. for 2005 billions of dollars billions of chained (2000)…

A: Nominal GDP and real GDP are two different methods of GDP calculation.

Q: Question 26 To avoid double counting when calculating gross domestic product (GDP), it is best to…

A: To avoid the problem of double counting, only value added at each stage of production should be…

Q: When calculating GDP using the expenditure, double counting is avoided by:

A: In expenditure method GDP is the sum of expenditures of final consumption, investment, government…

Q: The largest component of GDP as measured using the expenditure approach is: wages and salary…

A: The measure that depicts the value of goods and services being produced in an economy during…

Q: a) Give the definition of GDP and explain what items are not included in its calculation?

A: The Gross Domestic Product (GDP) is the measurement of the monetary value of all the final goods and…

Q: Question: What is the aggregate of the gross balances of primary income of all resident…

A: Gross Domestic Product (GDP) is a fundamental measure used to gauge the economic performance of a…

Q: a. The income-based estimate of Metrica's GDP is $1 b. The expenditure-based estimate of Metrica's…

A: Solution is given below step by step.

Q: Do not use satgpt

A: Step 1: GDP Computation $ in BillionsPersonal consumption expenditures 219.1Gross private…

Q: a) Oil price shocks have an evident impact on the short run aggregate supply curve. With the help of…

A: SRAS (Short run Aggregate Supply): It refers to the response of all the firms in the economy which…

Q: Analyze the two approaches used to measure Gross Domestic Product (GDP) Give example

A: Gross domestic product is the total value of the final goods that is manufactured and produced by…

Q: Personal Consumption Expenditures $ 400 Government Purchases 128 Gross Private Domestic Investment…

A: The National Money is the total amount of income earned by a country from economic activity over the…

Q: In an economy, the total spending by households (consumption) is $800 billion, business investment…

A: The Gross Domestic Product (GDP) is a vital economic indicator that measures the total value of all…

Q: Calculate the Gross National Product from the Data Below: Consumption Expenditures: Wages and…

A: GDP is the gross domestic product. GDP is defined as the market value of all the final goods and…

Q: Use the Market Values approach to calculate the GDP of a fictitious country using the data in the…

A: GDP is the sum total of market value of final goods and services produced in a country. Nominal GDP…

Q: Discuss two uses of National Income Statistics.

A: The national income statistics is used by a country to gather data and aggregate economic activity…

Q: Given the Aggregate Expenditure schedule for Country A below. Calculate national income and net…

A: Formula:Y=C+I+G+(X-M)now,For…

Q: government purchases $15 pesonal consumption 80 gross investment 29 consumption of fixed capital…

A: GDP is the total value of all finished commodities produced within the particular boundary of a…

Q: To calculate gross national income(GNI) from gross domestic product (GDP),__ must be added and ___…

A: The GDP accounts for the total value of all the production that happens within the country in the…

Q: Gross Domestic Product is caiculated by multiplying the quantities of goods by their prices because…

A: The total monetary value of all final products produced within a specific time frame, typically a…

Q: At the end of the year 2020, Statistics Kenya estimated the total amount spent on consumption,…

A: Gross Domestic Product (GDP) is a frequently employed macroeconomic figure that has numerous…

Q: Discuss the effectiveness of Gross Domestic Product (GDP) as a measure a measure of the standard of…

A: Gross Domestic Product(GDP) is the cumulative market value of every final goods and services…

Q: Item Personal consumption expenditure Government expenditure on goods and services Net taxes Gross…

A: GDP is the value of the final goods and services that are produced and manufactured in a country.

Q: Use either the expenditure approach or the income approach to calculate the following national…

A: GDP by Expenditure Method = Consumption + Investment + Government Spending + Net Exports Net Exports…

Q: Calculate the GDP using the Income Approach: Corporate Profits $200 Interests $150 Indirect…

A: GDP using income approach GDP = GNP + indirect business taxes + net income of foreigners +…

Q: (a) Calculate GDP using the Income and Expenditure Approach. (all figures are in billions of…

A: please find below the answer.

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

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Discuss the expenditure method of measuring national income
Explain how gross domestic product is calculated using each of the following: the income approach and the expenditure approach. Tour response must be at least 200 words in length.
An Indian citizen living in the US builds a new house in Spokane. In GDP calculations, this would be counted under: Group of answer choices 1) Imports 2) Consumption 3) Government Spending 4) Exports 5) Investment
Question: What is the aggregate of the gross balances of primary income of all resident institutional units knows as?[A] Gross domestic Product[B] Gross national product[C] Gross National income[D] Net national productPlease Don't use chatgpt or other ai tool.
Students are required to show ALL workings to be awarded the full marks for each part of this question. (a) Calculate GDP using the Income and Expenditure Approach. (all figures are in billions of dollars): Item Government purchase of goods and services Exports Receipts of factor income from the rest of the world Depreciation (consumption of fixed capital) Net fixed Investments Amount ($) 1,721.6 1,096.3 382.7 990.8 688.2 Corporate income taxes Consumption expenditures Indirect business taxes 265.2 6,739.4 664.6 Imports Payments of factor income to the rest of the world Inventory change Social security contributions Undistributed corporate profits (retained earnings) Government transfer and interest payments Personal interest payments Personal taxes 1,475.8 343.7 56.5 702.7 130.3 1,366.3 286.2 1,235.7
Calculate (a) GDP using the expenditure and (b) value added (industrial origin ) approaches. Calculate GNP. Agriculture, Fishery and Forestry 2000 Exports of Goods and Services 12000 Government Consumption Expenditure 1000 Gross Domestic Capital Formation 2000 Industry 3000 Imports of Goods and Services 12000 Net Factor Income from ROW 500 Personal Consumption Expenditures 7500 Services 5000 Statistical Discrepancy -500
To calculate GDP from the income side, one must add together wages, a) government income, interest, and profits. b) consumption and depreciation. c) interest, rent, depreciation, profits and indirect taxes net of subsidies. d) investment, rent, depreciation, profits and indirect taxes net of subsidies. e) net exports, depreciation, and profits.
Need answer pleas. correct answer only
Question 1 The table below shows the national income data of a country with a population of 40 million. Using the information in the table below, answer the following questions. Items RM (million) Wages and salaries Export Wholesale and retail Import Public consumption 35 20 13 10 30 Subsidies and financial aid 5 Government expenditure 24 Corporate investment Net property income from abroad 40 15 Based on the data given above: a) Calculate the value of GDP using expenditure approach. b) Calculate GDP per capita? c) Differentiate Real GDP and Nominal GDP
Which of the following methods of calculating GDP would NOT be accurate when the information on the saleand purchases of intermediate goods and services is not available? a) The income methodb) The expenditure methodc) The production methodd) The cost method
Describe the relationship among GDP, net domestic product, national income, personal income and disposal income
The following information is extracted from the National Income Accounts of an economy. Particulars Values Exports of goods and services 130 Depreciation 525 Government expenditure 450 Gross domestic investment 750 Imports of goods and services 135 Personal consumption expenditure 27,500 Find the value of net domestic product.