Table 5-2 Personal Consumption Expenditures 525 Government Transfer Payments 140
ID: 1139787 • Letter: T
Question
Table 5-2
Personal Consumption Expenditures
525
Government Transfer Payments
140
Net Income from Farm & Non-Farm Business
48
Depreciation (Capital Cost Allowance)
100
Interest Income
91
Exports
120
Corporate Profits Before Tax
75
Wages and Subsidies
175
Indirect Taxes
21
Personal Taxes
130
Imports
75
Corporate Income Taxes
18
Undistributed Corporate Profits
26
Gross Private Domestic Investment
145
Government Purchases of Goods and Services
260
Net Investment Income
-31
Other Earnings Not Paid Out
78
Personal Savings
20
Using table 5-2, calculate the GDP using the expenditure approach
(answer is 975, but how do we get it )
Personal Consumption Expenditures
525
Government Transfer Payments
140
Net Income from Farm & Non-Farm Business
48
Depreciation (Capital Cost Allowance)
100
Interest Income
91
Exports
120
Corporate Profits Before Tax
75
Wages and Subsidies
175
Indirect Taxes
21
Personal Taxes
130
Imports
75
Corporate Income Taxes
18
Undistributed Corporate Profits
26
Gross Private Domestic Investment
145
Government Purchases of Goods and Services
260
Net Investment Income
-31
Other Earnings Not Paid Out
78
Personal Savings
20
Explanation / Answer
GDP = personal consumption expenditures + gross private domestic investment + governent purchases + net exports or ( export - imports )
GDP = 525 + 145 + 260 + ( 120 - 75)
GDP = 930+45
GDP = 975
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