The table below sets out some data for Country X in 2007. Item Amount (in billio
ID: 1178692 • Letter: T
Question
The table below sets out some data for Country X in 2007.
Item Amount
(in billions of dollars)
Consumption expenditure 289
Government expenditure 99
Interest and investment income 33
Profit of corporations and
government enterprises 65
Income from farms and
unincorporated businesses 40
Gross investment 146
Exports 36
Imports 22
Wages, salaries, and supplementary
labour income 275
Capital consumption allowance 60
Indirect taxes less subsidies 75
a. Calculate net exports.
b. Use the expenditure approach to calculate GDP.
c. Use the income approach to calculate GDP.
d. Calculate net domestic product (at factor cost).
e. Calculate net domestic income (at market price).
Explanation / Answer
ans. a) net exports= Exports 36-Imports 22=14
b) Consumption expenditure 289+Government expenditure 99+Gross investment 146+net exports14=548 billions of dollars
c)Interest and investment income 33+Profit of corporations andgovernment enterprises 65+Income from farms andunincorporated businesses 40+Wages, salaries, and supplementarylabour income 275=413billions of dollars
d) Interest and investment income 33+Profit of corporations andgovernment enterprises 65+Income from farms andunincorporated businesses 40+Wages, salaries, and supplementarylabour income 275+ net exports14=427billions of dollars
e) Consumption expenditure 289+Government expenditure 99+Gross investment 146+net exports14=548 billions of dollars+Indirect taxes less subsidies 75=623 billions of dollars
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