The following table shows macroeconomic data for a hypothetical country. All figures are in billions of dollars.Billions of DollarsGross private domestic investment$2,300Depreciation$1,987Exports$3,120Imports$200Government purchases of goods and services$4,521Personal consumption expenditures$6,300Indirect business taxes and misc. items$1,341Income received from other countries$1,118Income paid to other countries$1,022Compensation of employees (wages)$8,174Corporate profits$1,895Rental income$365Net interest$903Proprietors’ income$1,343 If you calculate GDP by adding together the final demands of consumers, business firms, the government, and foreigners (i.e., using the expenditure approach), GDP for this economy is billion. Given this information, the statistical discrepancy between national income and net national product, obtained when GDP is measured using the expenditure approach, is billion.

Gross domestic product (GDP) is the money value of all final goods and services produced in a…

Answered: The following table shows macroeconomic…

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 following table shows macroeconomic data for a hypothetical country. All figures are in billions of dollars.

Billions of Dollars
Gross private domestic investment	$2,300
Depreciation	$1,987
Exports	$3,120
Imports	$200
Government purchases of goods and services	$4,521
Personal consumption expenditures	$6,300
Indirect business taxes and misc. items	$1,341
Income received from other countries	$1,118
Income paid to other countries	$1,022
Compensation of employees (wages)	$8,174
Corporate profits	$1,895
Rental income	$365
Net interest	$903
Proprietors’ income	$1,343

If you calculate GDP by adding together the final demands of consumers, business firms, the government, and foreigners (i.e., using the expenditure approach), GDP for this economy is billion.

Given this information, the statistical discrepancy between national income and net national product, obtained when GDP is measured using the expenditure approach, is billion.

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