Item 1.Suppose the government's national income and product accounts revealed the followinginformation:Expenditure ApproachAmountPersonal consumption expenditure1 980 088Government consumption expenditure354 981Gross domestic capital formation541 2331478 0161577 727Exports of goods and servicesImports of goods and servicesStatistical discrepancyNet Factor Income from Abroad(109 483)126 960725 2611 468 612Compensation of employeesNet operating surplusDepreciationIndirect business taxes less subsidies235 845237 390a. Using the data in the table, verify that the income approach and expenditure approach,yield the same measure of GDP. Set-up the National Income Accounting Procedure.b. Compute the value of the National Income (NI).c. Find PI, personal income, by making the appropriate adjustments to NI.d. Calculate the GNP value.

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Suppose the government's national income and product accounts revealed the following information:

ENGR.ECONOMIC ANALYSIS

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Chapter1: Making Economics Decisions

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Question

Item 1.
Suppose the government's national income and product accounts revealed the following
information:
Expenditure Approach
Amount
Personal consumption expenditure
1 980 088
Government consumption expenditure
354 981
Gross domestic capital formation
541 233
1478 016
1577 727
Exports of goods and services
Imports of goods and services
Statistical discrepancy
Net Factor Income from Abroad
(109 483)
126 960
725 261
1 468 612
Compensation of employees
Net operating surplus
Depreciation
Indirect business taxes less subsidies
235 845
237 390
a. Using the data in the table, verify that the income approach and expenditure approach,
yield the same measure of GDP. Set-up the National Income Accounting Procedure.
b. Compute the value of the National Income (NI).
c. Find PI, personal income, by making the appropriate adjustments to NI.
d. Calculate the GNP value.

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