specify the following using the information in table 6.4. quantities are given i

Question

specify the following using the information in table 6.4. quantities are given in millions of dollars

gross private domestice investment     586.1

inventory investment     =30.9

compensation of employees 5,178.6

corporate taxes    215.9

macrovian exports of good and services   380.4

depreciation 643.5

personal taxes 600.0

personal consumption expenditures 3,514.8

government purchases of goods and services 1,589.7

indirect business taxes minus subsidies 489.6

net factor payments to the rest of the world -17.3

residential construction 453.7

corporate profits minus dividends 45.7

governm transfer payments and interest 337.1

macrovian import of goods 285.0

social transfer payments 441.7

specify:

private investment,   GDP, GNP, NNP, national income and personal income

Explanation / Answer

Gross private investment = Net private investment + Depreciation = 586.1 + 643.5 = 1,229.6
Gross private investment = 1,229.6

GDP = Personal consumption expenditures + Gross private investment +
Government purchases + Net exports = 3,514.8 + 586.1 + 1,589.7 + (380.4 - 285.0) = 5,786
GDP = 5,786

GNP = GDP + (Receipts of factor income from the rest of the world -
Payments of factor income to the rest of the world) = 5786 + (-17.3) = 5,768.7
GNP = 5,768.7

NNP = GNP - Depreciation = 5768.7 - 643.5 = 5,125.2
NNP = 5,125.2

National income = NNP - (Indirect taxes - Subsidies) = 5125.2 - (489.6) = 4,635.6
National Income = 4,635.6

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