#5 Personal Taxes$ 40Social Security Contributions15Taxes on Production and Imports20Corporate Income Taxes40Transfer Payments22U.S. Exports24Undistributed Corporate Profits35Government Purchases90Gross Private Domestic Investment75U.S. Imports22Personal Consumption Expenditures250Consumption of Fixed Capital(depreciation)25Net Foreign Factor Income10Statistical DiscrepancyRefer to the accompanying data (all figures in billions of dollars). GDP is

The gross domestic product (GDP) is a monetary measure of the market value of all final products and services produced in a given time period.GDP by expenditure or output approach: GDP= Personal consumption by household + Gross private domestic investment + Government purchases + net exports. Putting it in the form of a formula we get GDP= C + I +G + Xn C= consumption by house hold = 250 I= gross private domestic investment= 75 G= government spending or purchases= 90 Xn= net exports, (Exports - imports) US exports - Us imports Xn= 24- 22= 2 GDP= 250 +75 + 90 +2 GDP= $417

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Personal Taxes $ 40 Social Security Contributions 15 Taxes on Production and Imports 20 Corporate Income Taxes 40 Transfer Payments 22 U.S. Exports 24 Undistributed Corporate Profits 35 Government Purchases 90 Gross Private Domestic Investment 75 U.S. Imports Personal Consumption Expenditures Consumption of Fixed Capital (depreciation) 22 250 25 Net Foreign Factor Income Statistical Discrepancy 10 Refer to the accompanying data (all figures in billions of dollars). GDP is

Personal Taxes $ 40 Social Security Contributions 15 Taxes on Production and Imports 20 Corporate Income Taxes 40 Transfer Payments 22 U.S. Exports 24 Undistributed Corporate Profits 35 Government Purchases 90 Gross Private Domestic Investment 75 U.S. Imports Personal Consumption Expenditures Consumption of Fixed Capital (depreciation) 22 250 25 Net Foreign Factor Income Statistical Discrepancy 10 Refer to the accompanying data (all figures in billions of dollars). GDP is

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter17: Production And Growth

Section: Chapter Questions

Problem 5CQQ

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Similar questions

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