which of these are included in gdp and which are gnp ANSWER

which of these are included in gdp and which are gnp?

ANSWER: GDP: $388
NDP: $362

$ 245 Personal consumption expenditures Net foreign factor income earned in the US Transfer payments Rents Consumption of fixed capital (depreciation) Social security contributions Interest Proprietor\'s income Net exports Dividends Compensation of employees Indirect business taxes Undistributed corporate profits Personal taxes Corporate income taxes Corporate profits Government purchases Net private domestic investment Personal saving 12 14 27 20 16 223 18 21 26 19 56 72 20

Solution

GDP = Compensation of employees + Rents + interests + Proprietor\'s Income + Corporate Profits + Taxes - Net foreign factor income earned in the US + Consumption of fixed capital

= 223+14+13+33+56+26-4+27 = $388

NDP = GDP-Depreciation = 388-27 = $361

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