Answer:
(a) GDP = $333.9 billion
(b) NDP = $322.1 billion
(c) NI = $307.7 billion
Step-by-step explanation:
(a) Compute GDP
This can be computed using the following formula:
GDP = Gross Domestic Product = Personal consumption expenditure + net private domestic investment + government purchases + (US exports of goods - US Imports of goods) ......... (1)
Substituting the values into equation (1), we have:
GDP = $219.1 + $52.1 + $59.4 + ($19.8 - $16.5) = $333.9
Since all figures are in billions, we have:
GDP = $333.9 billion
(b) Compute NDP
This can be computed using the following formula:
NDP = Net domestic product = GDP - Consumption of fixed capital ................... (2)
Substituting the values into equation (2), we have:
NDP = $333.90 - $11.8 = $322.1
Since all figures are in billions, we have:
NDP = $322.1 billion
(c) Compute NI
This can be computed using the following formula:
NI = National Income = NDP - Taxes on production and imports - Statistical discrepancy ........... (3)
Substituting the relevant values into equation (3), we have:
NI = $322.1 - $14.4 - $0.0 = $307.7
Since all figures are in billions, we have:
NI = $307.7 billion
