Below are hypothetical data for the economy in a particular year. There is no st

Question

Below are hypothetical data for the economy in a particular year. There is no statistical discrepancy.

Export 179
Capital consumption allowances 79
Government current purchases of G & S 134
Indirect taxes (less subsidies) 76
Wages, salaries, supplementary labor income 373
Gross Investment 139
Personal saving 49
Corporate income taxes 17
Government transfer payments 82
Net income from nonfarm unincorporated business, including rent 35
Personal consumption expenditure 398
Imports 170
Undistributed corporate profits 7
Personal taxes 136

a) use expenditure approach to compute GDP
b) Calculate NDP
c) Calculate NNI

Explanation / Answer

a) GDP = C(onsumption) + G(overnment) + I(nvestment) + Xn(net exports) = 398 + 134 + 139 + (179 - 170) = 680 b) NDP = GDP - depreciation = 680 - 79 = 601 c) NNI = GDP + net foreign factor income - indirect taxes - depreciation = 680 + 0 (none listed) - 76 - 79 = 525

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