Question

Consumption of Fixed Capital $25 Government Purchases 315 US imports 260 Personal Taxes 45 Transfer Payments 247 US Exports 249 Personal Consumption Expenditures 475 Net Foreign Factor Income 5 Gross Private Domestic Investment 300 Taxes on Production and Imports 245 Undistributed Corporate Profits 60 Social Security Contributions 240 Corporate Income Taxes 65 Statistical Discrepancy 40 Refer to the accompanying national income data (in billions of dollars). Gross domestic product is:_______.

Answer 1

Answer:

$1,079 billion

Explanation:

Given that,

Consumption of Fixed Capital = $25

Government Purchases = 315

US imports = 260

Personal Taxes = 45

Transfer Payments = 247

US Exports = 249

Personal Consumption Expenditures = 475

Net Foreign Factor Income = 5

Gross Private Domestic Investment = 300

Taxes on Production and Imports = 245

Undistributed Corporate Profits = 60

Social Security Contributions = 240

Corporate Income Taxes = 65

Statistical Discrepancy = 40

GDP:

= Personal Consumption Expenditures + Gross Private Domestic Investment + Government Purchases + Net exports

= $475 + $300 + $315 + ($249 - $260)

= $1,079 billion