Question

The following national income data are in billions of dollars.

Disposable income $200
Net private domestic investment 40
U.S. imports 15
National income 300
Personal taxes 31
Net exports 9
Gross private domestic investment 55
Net foreign factor income 10
Statistical discrepancy 0
This nation’s GDP is
$315 billion.

$324 billion.

$305 billion.

$367 billion.

Answer 1

The dollar value of GDP for Country A is calculated using the formula GDP = C + I + G + (X - M). After plugging in the given values for consumption, investment, government spending, exports, and imports, we find that the GDP is $3,030 billion.

Step-by-step explanation:

To calculate the Gross Domestic Product (GDP) of Country A, we use the equation GDP = C + I + G + (X - M), where C is consumption spending, I is business investment, G is government purchases, X is export sales, and M is imports.

Plugging the given values into this equation, we get:

Consumption spending (C): $2,000 billion

Business investment (I): $50 billion

Government purchases (G): $1,000 billion

Export sales (X): $20 billion

Imports (M): $40 billion

Now, we calculate:

GDP = $2,000 billion + $50 billion + $1,000 billion + ($20 billion - $40 billion) = $3,030 billion.

Therefore, the dollar value of GDP for Country A is $3,030 billion.

Answer 2

Option C ($305 million) is the correct answer.

Step-by-step explanation:

GDP = GNP - Net foreign factor income

GNP can be calculated by using the following formula

GNP (FC) = NNP (FC) + depreciation

NNP (FC) = 300, thus the depreciation is as follows:

Depreciation = Gross private domestic investment - Net private domestic investment

= 55 minus 40 = 15

Now, we can calculate GNP (FC) by substituing the values into the formula

GNP (FC) = 300 plus 15 = 315

Now, we can calculate GDP by by substituing the values into the formula.

GDP = 315 minus 10 = 305

Thus, the value of U.S. GDP is $305 billion

Therefore, the correct answer is option C