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a. Using the above data, determine GDP by both the expenditures approach and the income approach. Then determine NDP. GDP using the expenditures approach = $ billion GDP using the income approach = $ billion NDP = $ |billion

a. Using the above data, determine GDP by both the expenditures approach and the income approach. Then determine NDP. GDP using the expenditures approach = $ billion GDP using the income approach = $ billion NDP = $ |billion

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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Below is a list of domestic output and national income figures for a certain year. All figures are in billions. The questions that follow ask you to determine the major national income measures by both the expenditures and the income approaches. Category Billions Category Billions Personal consumption expenditures $245 Net exports 11 Net foreign factor income 4 Dividends 16 Transfer payments 12 Compensation of employees 223 Rents 14 Taxes on production and imports 18 Statistical discrepancy 8 Undistributed corporate profits 21 Consumption of fixed capital (depreciation) 27 Personal taxes 26 Social Security contributions 20 Corporate income taxes 19 Interest 13 Corporate profits 56 Proprietors' income 33 Government purchases 72 Personal saving 20 Net private domestic investment 33 Instructions: Enter your answers as a whole number. a. Using the above data, determine GDP by both the expenditures approach and the income approach. Then determine NDP. GDP using the expenditures approach = $ billion GDP using the income approach = $ billion NDP = $ | billion b. Now determine NI in two ways: first, by making the required additions or subtractions from NDP (method 1); and second, by adding up the types of income and taxes that make up NI (method 2). Method 1= $ billion Method 2 = $ billion c. Adjust NI (from part b) as required to obtain Pl. PI = $ billion d. Adjust PI (from part c) as required to obtain DI. DI = $ billion
Transcribed Image Text:Below is a list of domestic output and national income figures for a certain year. All figures are in billions. The questions that follow ask you to determine the major national income measures by both the expenditures and the income approaches. Category Billions Category Billions Personal consumption expenditures $245 Net exports 11 Net foreign factor income 4 Dividends 16 Transfer payments 12 Compensation of employees 223 Rents 14 Taxes on production and imports 18 Statistical discrepancy 8 Undistributed corporate profits 21 Consumption of fixed capital (depreciation) 27 Personal taxes 26 Social Security contributions 20 Corporate income taxes 19 Interest 13 Corporate profits 56 Proprietors' income 33 Government purchases 72 Personal saving 20 Net private domestic investment 33 Instructions: Enter your answers as a whole number. a. Using the above data, determine GDP by both the expenditures approach and the income approach. Then determine NDP. GDP using the expenditures approach = $ billion GDP using the income approach = $ billion NDP = $ | billion b. Now determine NI in two ways: first, by making the required additions or subtractions from NDP (method 1); and second, by adding up the types of income and taxes that make up NI (method 2). Method 1= $ billion Method 2 = $ billion c. Adjust NI (from part b) as required to obtain Pl. PI = $ billion d. Adjust PI (from part c) as required to obtain DI. DI = $ billion
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