5. The following data (in millions of dollars) expresses all the relevant information forthe agents in a given economy:Consumption300Wages and Salaries275Net Interest and Rents40Government Expenditures on Goods and Services125Indirect Taxes Minus Subsidies60Imports100Exports150Gross Investment90Depreciation50Corporate Profits75Proprietor's Income60a) Determine the gross domestic product for this economy.b) Determine the national income for this economy.c) Determine the net factor income from abroad for this economy. What is themeaning of this value?

We have GDP = C + I + G + NX ( using expenditure method )

Answered: 5. The following data (in millions of…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question 5 Assume you have the following data for a hypothetical country for a specific year (in billions of ZAR): Wages and Salaries: R2,500 Interest: R300 Rent: R200 Profits: R1,000 Taxes (Indirect Taxes Minus Subsidies): R400 Depreciation: R500 Given the data above, which of the following methods of calculating Gross Domestic Product (GDP) may be used? A. Expenditure approach B. Income approach c. Product approach D. Trade approach

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