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Using the following national income accounting data, compute (a) GDP, (b) NDP, and (c) NI. All figures are in billions.Category - ValueCompensation of employees - $194.2U.S. exports of goods and services - 17.8Consumption of fixed capital - 11.8Government purchases - 59.4Taxes on production and imports - 14.4Net private domestic investment - 52.1Transfer payments - 13.9U.S. imports of goods and services - 16.5Personal taxes - 40.5Net foreign income - 2.2Personal consumption expenditures - 219.1Statistical discrepancy - 0Instructions: Round your answers to one decimal place.
Using the following national income accounting data, compute (a) GDP, (b) NDP, and (c) NI. All figures are in billions.Category - ValueCompensation of employees - $194.2U.S. exports of goods and services - 17.8Consumption of fixed capital - 11.8Government purchases - 59.4Taxes on production and imports - 14.4Net private domestic investment - 52.1Transfer payments - 13.9U.S. imports of goods and services - 16.5Personal taxes - 40.5Net foreign income - 2.2Personal consumption expenditures - 219.1Statistical discrepancy - 0Instructions: Round your answers to one decimal place.
Answer:a. $343.7 billionb. $331.9 billionc. $334.1 billionExplanation:The computation is shown below:a. For GDPGDP = Personal consumption expenditures + Government purchases + Net private domestic investment + Consumption of fixed capital + net exportswhere,Net exports = U.S. exports of goods and services - U.S. imports of goods and services= $17.8 - $16.5= $1.3 billionSo, the GDP would be= $219.1 + $59.4 + $52.1 + $11.8 + $1.3=$343.7 billionb. For NDPNDP = GDP - Consumption of fixed capital or depreciation= $343.7 - $11.8=$331.9 billionc. For NINI = GDP + Net foreign income= $331.9 billion + 2.2 billion=$334.1 billionAll values are in billions...
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