Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
(a) Use either the expenditure approach or the income approach to calculate the following
- Calculate the net domestic product (NDP),

Transcribed Image Text:The following table shows some national accounting data for a given year for a hypothetical country.
Table 1 National Accounting Data ($billions)
Capital depreciation
$950 (billions)
Change in business inventory
50
Compensation of employees
5000
Corporate profit
800
Durable goods
600
Exports
200
Factor payments from the rest of the world
360
Factor payments to the rest of the world
300
Farm income
300
Gross private domestic investment
1000
Government spending
800
Imports
150
Net interest
600
Non-durable goods
2000
Non-farm income
700
Proprietors' income
1000
Rental income
100
Services
4000
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