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7. () Below is a list of domestic output and national income figures for a given year. All figures are billions. The questions that follow ask you to determine the major national income measur Epoth the expenditure and income methods. Show your work! Provide how you calculate Personal consumption expenditures Net foreign factor income Statistical discrepancy Consumption of fixed capital (depreciation) Imports Exports Personal taxes Government purchases Net private domestic investment Personal saving $243 4 27 43 33 26 72 33 20 a. Gross private domestic investment (Ig) is.: = $60 b. Net Exports (Xn) is: $ -10. c. GDP by the expenditure approach = C+ Ig + G+ Xn $ 365 . d. NDP: $ e. NI by making the required additions and subtractions from GDP is: $ %3D

7. () Below is a list of domestic output and national income figures for a given year. All figures are billions. The questions that follow ask you to determine the major national income measur Epoth the expenditure and income methods. Show your work! Provide how you calculate Personal consumption expenditures Net foreign factor income Statistical discrepancy Consumption of fixed capital (depreciation) Imports Exports Personal taxes Government purchases Net private domestic investment Personal saving $243 4 27 43 33 26 72 33 20 a. Gross private domestic investment (Ig) is.: = $60 b. Net Exports (Xn) is: $ -10. c. GDP by the expenditure approach = C+ Ig + G+ Xn $ 365 . d. NDP: $ e. NI by making the required additions and subtractions from GDP is: $ %3D

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The document is a worksheet on calculating national income using various economic indicators for a given year. All figures are in billions. Below is a transcription and explanation: --- **Domestic Output and National Income Figures** 1. **Data Table:** - **Personal consumption expenditures:** $243 - **Net foreign factor income:** 4 - **Statistical discrepancy:** 0 - **Consumption of fixed capital (depreciation):** 27 - **Imports:** 43 - **Exports:** 33 - **Personal taxes:** 26 - **Government purchases:** 72 - **Net private domestic investment:** 33 - **Personal saving:** 20 2. **Questions:** a. **Gross private domestic investment (Ig):** $60 b. **Net Exports (Xn):** $-10 (Net Exports is calculated as Exports minus Imports, i.e. \( 33 - 43 = -10 \)) c. **GDP by the expenditure approach:** \( C + Ig + G + Xn = 243 + 60 + 72 + (-10) = \$365 \) d. **NDP (Net Domestic Product):** Uses the formula GDP - Consumption of fixed capital. (Calculation needed) e. **NI (National Income) by making the required additions and subtractions from GDP:** Calculation needed. This worksheet guides students on how to compute various economic measurements such as GDP, NDP, and NI using specified data points. It suggests using both expenditure and income approaches for calculations, emphasizing the understanding of how each component contributes to the overall economic picture.
Transcribed Image Text:The document is a worksheet on calculating national income using various economic indicators for a given year. All figures are in billions. Below is a transcription and explanation: --- **Domestic Output and National Income Figures** 1. **Data Table:** - **Personal consumption expenditures:** $243 - **Net foreign factor income:** 4 - **Statistical discrepancy:** 0 - **Consumption of fixed capital (depreciation):** 27 - **Imports:** 43 - **Exports:** 33 - **Personal taxes:** 26 - **Government purchases:** 72 - **Net private domestic investment:** 33 - **Personal saving:** 20 2. **Questions:** a. **Gross private domestic investment (Ig):** $60 b. **Net Exports (Xn):** $-10 (Net Exports is calculated as Exports minus Imports, i.e. \( 33 - 43 = -10 \)) c. **GDP by the expenditure approach:** \( C + Ig + G + Xn = 243 + 60 + 72 + (-10) = \$365 \) d. **NDP (Net Domestic Product):** Uses the formula GDP - Consumption of fixed capital. (Calculation needed) e. **NI (National Income) by making the required additions and subtractions from GDP:** Calculation needed. This worksheet guides students on how to compute various economic measurements such as GDP, NDP, and NI using specified data points. It suggests using both expenditure and income approaches for calculations, emphasizing the understanding of how each component contributes to the overall economic picture.
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