Use either the expenditure approach or the income approach to calculate the following national income statistics based on the data given in Table 1. Calculate the country's gross domestic product (GDP) 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 inventory50Compensation of employees5000Corporate profit800Durable goods600Exports200Factor payments from the rest of the world360Factor payments to the rest of the world300Farm income300Gross private domestic investment1000Government spending800Imports150Net interest600Non-durable goods2000Non-farm income700Proprietors' income1000Rental income100Services4000

The national income or the gross domestic product refers to the final goods and services that are…

The following table shows some national accounting data for a given year for a hypothetical country. Table 1 National Accounting Data ($billions) Capital depreciation Change in business inventory Compensation of employees Corporate profit Durable goods $950 (billions) 50 5000 800 600 Exports 200 Factor payments from the rest of the world 360 Factor payments to the rest of the world 300 Farm income Gross private domestic investment 300 1000

The following table shows some national accounting data for a given year for a hypothetical country. Table 1 National Accounting Data ($billions) Capital depreciation Change in business inventory Compensation of employees Corporate profit Durable goods $950 (billions) 50 5000 800 600 Exports 200 Factor payments from the rest of the world 360 Factor payments to the rest of the world 300 Farm income Gross private domestic investment 300 1000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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