Using the following national income accounting data, compute GDP by both the expenditures and income approaches. All figures are in billions. Category Profits of corporations and government enterprises before taxes Exports Capital consumption allowances Government current purchases of goods and services Net income of farm and unincorporated businesses Taxes less subsidies on factors of production Wages, salaries, supplementary labour income Gross investment Indirect taxes less subsidies on products Interest and investment income Personal consumption expenditures Imports Using the expenditures approach, GDP = $ Using the income approach, GDP = $ billion billion Value $46 94 65 113 24 75 371 167 11 59 284 7

Using the following national income accounting data, compute GDP by both the expenditures and income approaches. All figures are in billions. Category Profits of corporations and government enterprises before taxes Exports Capital consumption allowances Government current purchases of goods and services Net income of farm and unincorporated businesses Taxes less subsidies on factors of production Wages, salaries, supplementary labour income Gross investment Indirect taxes less subsidies on products Interest and investment income Personal consumption expenditures Imports Using the expenditures approach, GDP = $ Using the income approach, GDP = $ billion billion Value $46 94 65 113 24 75 371 167 11 59 284 7

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

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Question

Using the following national income accounting data, compute GDP by both the expenditures and income
approaches. All figures are in billions.
Category
Profits of corporations and government enterprises before taxes
Exports
Capital consumption allowances
Government current purchases of goods and services
Net income of farm and unincorporated businesses
Taxes less subsidies on factors of production
Wages, salaries, supplementary labour income
Gross investment
Indirect taxes less subsidies on products
Interest and investment income
Personal consumption expenditures
Imports
Using the expenditures approach, GDP = $
Using the income approach, GDP = $
billion
billion
Value
$46
94
65
113
24
75
371
167
11
59
284
7

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Step 1: Defining National Income Accounting

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