The following are data for the US economy for 2000 in billions of dollars : Net
ID: 2505622 • Letter: T
Question
The following are data for the US economy for 2000 in billions of dollars :
Net rental income of persons
141.6
Depreciation
1,241.3
Compensation of employees
5,715.2
Personal consumption expenditures
6,728.4
Sales and excise taxes
762.7
Business transfer payments
43.9
Statistical discrepancy
-130.4
Gross private domestic investment
1,767.5
Exports of goods and services
1,102.9
Net subsidies of government business
37.6
Government purchases of goods and services
1,741.0
Imports of goods and services
1,466.9
Net interest
532.7
Proprietors income
715.0
Corporate profits
876.4
Net factor income from rest of world
-12.1
please show your work
A: Compute GDP using the spending approach
B: Compute net domestic product
C: Compute national income two ways
Net rental income of persons
141.6
Depreciation
1,241.3
Compensation of employees
5,715.2
Personal consumption expenditures
6,728.4
Sales and excise taxes
762.7
Business transfer payments
43.9
Statistical discrepancy
-130.4
Gross private domestic investment
1,767.5
Exports of goods and services
1,102.9
Net subsidies of government business
37.6
Government purchases of goods and services
1,741.0
Imports of goods and services
1,466.9
Net interest
532.7
Proprietors income
715.0
Corporate profits
876.4
Net factor income from rest of world
-12.1
The following are data for the US economy for 2000 in billions of dollars: Net rental income of persons 141.6 Depreciation 1,241.3 Compensation of employees 5,715.2 Personal consumption expenditures 6,728.4 Sales and excise taxes 762.7 Business transfer payments 43.9 Statistical discrepancy -130.4 Gross private domestic investment 1,767.5 Exports of goods and services 1,102.9 Net subsidies of government business 37.6 Government purchases of goods and services 1,741.0 Imports of goods and services 1,466.9 Net interest 532.7 Proprietors income 715.0 Corporate profits 876.4 Net factor income from rest of world -12.1 please show your work Compute GDP using the spending approach Compute net domestic product Compute national income two waysExplanation / Answer
a. GDP = C + G + I + (X - M)
GDP = 6,728.4 + 1,741.0 + 1,767.5+ (1,102.9-1,466.9) = 9872.9
In this case the C is represented by Household Consumption
The G refers to Government Spending
I is gross private investment
(X - M) is the net exports
b. The net domestic product (NDP) equals the gross domestic product (GDP) minus depreciation on a country's capital goods.
net domestic product =9872.9-1,241.3 =8631.6
c. Calculation of National Income from GDP:
W is the wages
Rental income is the R
Interest income is i
PR are business profits
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