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

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Measuring A Nation's Income

Section: Chapter Questions

Problem 12PA

See similar textbooks

Similar questions

National Income DeterminationThe following figures are from data on Good Island EconomyItems $mNet private investment 940Depreciation 56Compensation of employees 2 256Corporate taxes 416Personal taxes 756Personal Consumption expenditure 4 386Government purchases 3 182Indirect business taxes minus subsidies 482Payment of factor income to the rest of the world 95Corporate profits minus dividends 56Government transfer payments and interest 243Exports 855Receipts of factor income from abroad 186Imports of goods and services 385Social insurance payments 332 Required: Use the above information to answer the followingi.) Calculate for Good Island:a. Gross private investment b. Gross Domestic product c. Gross National Product d. Net National Product e. National income f. Personal Income g. Disposable Personal Income
The table below gives some of the items in the U.S. National Income and ProductAccounts in 1995.ItemAmount(trillions ofdollars)Consumption expenditure 4.97Investment 1.14Government expenditures 1.37Net exports 0.08Wages 4.20Interest, rent, and profit 1.68Depreciation 0.89a) Use the expenditure approach to calculate U.S. GDP in 1995.b) Use the income approach to calculate U.S. net domestic product at factor cost in
QUESTION TWOSuppose that the economy of Mwaliteta Republic has the following data for some economic variables. Assume that Mwaliteta Republic has a population of 500,000 people.Variable Amount in million ZMWExpenditure on Non-durable goods 98Non-residential fixed investment 79Central government expenditure 60Local government expenditure 82Expenditure on durable goods 82Expenditure on services 99Export expenditure 60Inventory Investment 5Depreciation 4Property income from abroad 12Indirect taxes 12Residential fixed investment 42Personal income tax…
Question # 6 Based on the following data for a hypothetical economy Millions Wage and salaries Government Purchases Exports Rental Income Profit Interest Consumption and spending Imports Private investment Spending $6000 $2000 $2650 $450 $1600 $1000 $4800 $2400 $2000 a. Calculate the GDP using expenditure approach: b. Calculate the GDP using income approach: c. Suppose that in the next vear export deerease to 1650 million. Import increase to 3400 million and consumption falls to 2800 million. What will the GDP be in that year?
The following table provides data for an economy in a certa e Consumpticn expenditure Tmports 1000 600 Government 700 purchases of goods and services Construction 500 of new homes and aparchenta Sales of 600 existing homen and apertmenta Exporta 500 Government 200 payments to retirees Household purchases of durable goods Change in inventory 300 100 A Calculate the value of investment spending B. What is the value of government spending C. What is the value of consumer spending D. What is the value of net exports spending E Calculate the value of GDP according to the spending approach
Wha t components of GDP (if any) would each of thefollowing tt"a:nsactions affc,: t? Explain.a. Uncle Henry buys a new refrigerator from adomestic manufactu=.b. Aunt Jane buys a new house from a local builder:c. The Jackson famil}' bU}'S an old Victorian housefrom the Walker fan1ily.d. You pay a hairdresser for a haircut.e. Ford sells a Mustang from its inventory to theMartinez family.f. Ford manufactures a Focus and sells il to Avis, thecar rental company.g. Cal.ilornia hires workers to repave Highway JOI.h. The federal government sends your grandmothera Social Securil y check.i. Your parents buy a bo ttle of French wine.j. Honda expands its factory in Ohio.
Suppose a closed economy has a national income of $260 milion. $535 midon in private savings, $200 millon worth of tax evenue, and $150 milion in govemment spenting what is the consumprion expenditure in this economy? Os125 milion Os155 milion OS385 mition Ossa5 milion OS645 milion
The table below gives date about the economy of countryX, answer the question below given the provided information. lg AE GDP=Y DI G M 40 10 30 15 15 60 10 30 15 15 80 10 30 15 15 100 10 30 15 15 120 10 30 15 15 140 10 30 15 15 160 10 30 15 15 a. Fill in the blanks in the table if T=20 and C= 10+0.75(Y-T) b. What is the equilibrium level of income (GDP)? c. What are the equilibrium values of consumption and saving? d. If taxes increase to 30, what is the new equilibrium GDP?
Suppose that there are two individuals in an economy, Person 1 and Person 2. Person 1 buys asecond-hand car from Person 2 for $12,000.10. What is the change in GDP according to the Income Approach here? What is the changeof each person’s contribution to GDP according to the Income Approach? Suppose now instead that an individual was buying $400 of wine from a domestic producer ofwine. Now suppose that this individual decides to import $400 of wine instead.11. What is the change of Consumption (C), Investment (I), Government Spending (G), NetExports (NX), and GDP as calculated by the Expenditure Approach in this example?Finally, now consider the following table:Government Purchases of Goods andServices$58.5Indirect Taxes Less Subsidies $29Personal Income Taxes $41.5Wages and Compensation $165.5Interest on Public Debt $15.5Consumption Expenditure $168.4Exports $90.9Depreciation $33.5Imports $93.3Gross Investment $67.2Net Interest Income $19.0Business Profits Before Taxes $45.512. What is…
From the data below calculate the gross national product at factor cost: Ksh. MillionImports 42,000Value of physical increase in stock 1,300Exports 43,000Capital formation 25,000Government expenditure 29,000Consumer expenditure 84,000Taxes on expenditure 20,000Subsidies 3,000Net property income from abroad 400
1. What relationship does the income expenditure model represent? Why is it used?
For each of the following transactions, determine the contribution to the currentyear’s GDP. d) You are informed that you have won a lottery worth GHC 3million to be paidto you immediately.e) You are informed that you have won a lottery worth GHC 3million to be paidto you immediately. In addition, the GNL pays you GHC 5000 to appear intheir promotional advert.f) Busy internet replaces all its stock of all computers with brand new locallymanufactured computers from rLg worth GHC 100m. It sells its old computersfor GHC 40million to rLg which resells them for GHC 60million after someminor repairs work on them.