37 - Investment expenditures: 100, Net exports: -100 Imports: 300, Direct taxes: 400, Indirect taxes: 500, Depreciations: 600, Consumption expenditures: 700, Public expenditures: 800 What is the national income value using the data? a) 400 B) 500 C) 900 D) 1000 E) 700
37 - Investment expenditures: 100, Net exports: -100 Imports: 300, Direct taxes: 400, Indirect taxes: 500, Depreciations: 600, Consumption expenditures: 700, Public expenditures: 800 What is the national income value using the data? a) 400 B) 500 C) 900 D) 1000 E) 700
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
37 - Investment expenditures: 100, Net exports: -100 Imports: 300, Direct taxes: 400, Indirect taxes: 500,
a) 400
B) 500
C) 900
D) 1000
E) 700
Expert Solution
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Step 1
National income ( NNP FC ) means the value of goods and services produced by a country during a financial year. It is calculated using the identity :
GDP = C + I + G + NX
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