Question

The following is a list of figures for a given year for the country of Penbrokia in billions of dollars.  Using this data, compute: (a) GDP; (b) NDP; (c) NI; (d) PI; (e) DI; (f) Net exports. Furniture, appliance, autos 500 Inventory 75 New Plant & Equipment of Corporations 335 New Plant & Equipment by SUNY / CUNY 55 Inventory 60 Cigarette Indirect Business Tax 40 Social Contributions by Working People 300 Consumption of Fixed Capital 23 New Housing Construction 123 Housing built in 1995 and sold this year 47 Purchases of durable goods by consumers 55 Exports of automobiles by the U.S. to Japan 69 Imports of automobiles to the U.S. from Japan 45 an American working overseas in France earning $100,000 and a French woman working in the U.S. for $125,000 ?? Consumer expenditures on clothing, medicine, food 40 Consumer expenditures on baseball games, concerts, etc 40 Local, State and Federal Taxes 65 Cashing in of a savings bond pourchased in 2000 26 Retirees collecting social security 43 GDP NDP NI PI DI Net Exports

Answer 1

(a) GDP =$593b

(b) NDP =$570b

(c) NI =$570b

(d) PI =$643

(e) DI =$578

(f) Net exports $24

Step-by-step explanation:

Gross Domestic Product (GDP): This is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.

(a) GDP $b

New Plant & Equipment of Corporations 75

New Plant & Equipment by SUNY 335

Cigarette 60

New Housing Construction 123

GDP 593

(b) NDP=GDP-Depreciation(i.e Capital Consumption) $b

Gross Domestic Product(GDP) 593

Less: Consumption of Fixed Capital 23

NDP(Net Domestic Product) 570

(c) NI=National Income $b

NDP 570

Add: Income of American working overseas($100,000) 0.0001

Less: Income of Foreigner working in US ($125,000) -0.000125

National Income 570

(d) PI $bn

National Income 570

Add: Housing built in 1995 and sold this year 47

Cashing in of a savings bond purchased in 2000 26

Personal Income(PI) 643

(e) DI=Disposable income $b

Personal Income(PI) 643

Less: Personal Income Tax 65

Disposable income 578

(f) Net exports. $b

Exports of automobiles 69

Less: Imports of automobiles 45

Net exports. 24