**Table Analysis on National Accounts**This table outlines various components related to national expenditure and the calculation of GDP and GNP for Magnolia, measured in thousands of dollars.**Components and Expenditures:**- **Social Security payments:** $290,000- **Depreciation:** $60,000- **Gross private investment:** $740,000- **Exports:** $210,000- **Imports:** $350,000- **Salaries earned by foreigners working in Magnolia:** $170,000- **Household consumption:** $940,000- **Purchases of raw materials:** $310,000- **Government purchases:** $720,000- **Capital income:** $240,000- **Salaries earned by Magnolian residents working abroad:** $210,000**Key Calculation Findings:**- Using the expenditure method, Magnolia's GDP is calculated to be $2,260,000. - There is a prompt to determine the value of Magnolia's GNP, with the space left for the response to be entered.**Explanation of GDP and GNP Calculation:**- **GDP (Gross Domestic Product):** The total value of all goods and services produced within a country's borders over a specified period.- **GNP (Gross National Product):** Similar to GDP but adds the value of incomes earned by residents abroad and subtracts the value of incomes earned by foreigners domestically.In this context, GNP is calculated by:\[ \text{GNP} = \text{GDP} + (\text{Salaries earned by residents abroad}) - (\text{Salaries earned by foreigners domestically}) \]\[ \text{GNP} = 2,260 + 210 - 170 \]Entering the calculated GNP as an integer in the provided space ensures clarity in educational and analytical contexts.

here we calculate the Value of GNP ( Gross National Product) , by calculating the GDP ( Gross Domestics Product ) , so the calculation as follow-Here we calculate the GDP by using the Expenditure Method as follow- 1. Using expenditure method, GDP (in thousands) = $2260 calculation: Gross Domestic Product (GDP)= consumption expenditure + Investment+ government expenditure + net exports (exports - imports) Gross Domestic Product (GDP)= 940 + 740 + 720 + (210 - 350) Gross Domestic Product (GDP)= 2260 so here Gross Domestic Product (GDP) is $2260 2. The value of Magnolia's Gross National Product (in thousands) = $2300 Gross National Product = consumption expenditure + Investment + government expenditure + net exports (exports - imports + Z ( (Income earned by Magnolia residents abroad) - (Income earned by foreign residents in Magnolia)) Gross National Product= 940 + 740 + 720 + (210 - 350) + (210 - 170) Gross National Product= 2300 so here Gross National Product is $2300 or alternate Method as follow- GNP = GDP + Income earned by Magnolia residents abroad) - (Income earned by foreign residents in Magnolia)) GNP= $2260+(210-170) GNP = $2260+40 GNP = $2300

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Expenditure (in thousands) Component Social Security payments $290 Depreciation $60 Gross private investment $740 Exports $210 Imports $350 Salaries earned by foreigners working in Magnolia $170 Household consumption $940 Purchases of raw materials $310 Government purchases $720 Capital income $240 Salaries earned by Magnolian residents working abroad $210 Using the expenditure method, the data show that Magnolia's GDP (in thousands) is $ 2260 . (Enter your response as an integer.) The value of Magnolia's GNP (in thousands) is $ - (Enter your response as an integer.)

Expenditure (in thousands) Component Social Security payments $290 Depreciation $60 Gross private investment $740 Exports $210 Imports $350 Salaries earned by foreigners working in Magnolia $170 Household consumption $940 Purchases of raw materials $310 Government purchases $720 Capital income $240 Salaries earned by Magnolian residents working abroad $210 Using the expenditure method, the data show that Magnolia's GDP (in thousands) is $ 2260 . (Enter your response as an integer.) The value of Magnolia's GNP (in thousands) is $ - (Enter your response as an integer.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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