ASSIGNMENT #4
Questions:
(1) To calculate the value of GDP from the expenditure method, you can use the following equation: GDP = C + In + G + Xn. Do you agree or disagree, and why?
(2) The table below shows national income accounting data. All figures in Billions
| Compensation of employees U.S. exports of goods and services Consumption of fixed capital (depreciation) Government purchases Taxes on production and imports Net private domestic investment Govt. Transfer payments U.S. imports of goods and services Personal taxes Net foreign factor income Personal consumption expenditures Statistical discrepancy Rents | $194.2 17.8 11.8 59.4 14.4 52.1 13.9 16.5 40.5 2.2 219.1 0 42.5 |
(a) Using the following national income accounting data, compute Gross Domestic Product value by expenditure method.
(b) Compute Net Domestic Product value by any method possible.
(c) Compute National Income by adjustment method.