Please provide a guided answer or a brief explanation your h

Please provide a guided answer or a brief explanation, your help is very appreciated.

Using the data provided in the table, calculate: a)GDP by expenditure method; b)GDP by income method; c) Net domestic product; d) National income. Credit interest Gross Investment Wage Corporate profit Value added tax Rent Net Exports Government spending Net investment Proprietor\'s income Transfer payments Private consumption 12 216 113 20 45 21 23 260

Solution

a.

GDP by expenditure method= Govt. Expenditure +Pvt. consumption + gross investment + net export

=90+260+55+9

=$414

c.

Net domestic product.

NDP by Income method = credit interest + wage+ corporate profit +rent +Propritor income

=12+216+113+20+21

=$382

(b)

Depreciation = Gross investment - net investment

=55-45

=$10

GDP at MP = NDP at FC + Depreciation

=$382+10

=$392

(d)

National Income (NNP_FC)= NDP at FC + Net factor income from abroad

Since net factor income from abroad is not given, so the national income will be equal to the net domestic product.

National income =$382+0

=$382