Table Hypothetical Canadian National Income and Product Acco

Table: Hypothetical Canadian National Income and Product Accounts Data

Category

Billions of dollars

Consumption (personal consumption expenditures)

400

Investment (gross private domestic investment)

150

Government consumption (government expenditures)

80

Exports

210

Imports

60

Foreign income payments to domestic factors

20

Domestic income payments to foreign factors

10

Net unilateral transfers

   5

6.

(Table: Hypothetical Canadian National Income and Product Accounts Data) The GNI for the economy provided is:

A)

$10.

B)

$20.

C)

$780.

D)

$790.

Solution

GNI = Consumption + Investment + Government consumption + Exports - Imports + Foreign income payments to domestic factors - Domestic income payments to foreign factors

GNI = 400 + 150 + 80 + 210 - 60 + 20 - 10 = $ 790

Answer is (D) $ 790