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14 January, 05:14

Use the following information to calculate GDP. You may calculate GDP from either the expenditure side or the income side of the accounts.

Government purchases of goods and services 3,200

Consumption 11,500

Compensation of employees 9,100

Business structures and equipment investment 1,500

Residential investment 500

R&D expenditures 200

Corporate profits 1,500

Rent 300

Interest 1,000

Proprietors income 200

Change in business inventories - 100

Taxes on production and imports 2,000

Government transfer payments 1,800

Exports 1,500

Imports 2,000

Depreciation 2,000

Statistical discrepancy 200.

a. Calculate GDP

b. Calculate National Income.

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  1. 14 January, 05:31
    0
    GDP formula:

    GDP = consumption + residential investment + change in business inventory + business structure and equipment investment + government purchases of goods and services + R$D expenditure + export - import

    Consumption 11,500

    Residential investment 500

    Change in business inventories - 100

    Business structures and equipment investment 1,500

    Government purchases of goods and services 3,200

    R&D expenditures 200

    Corporate profits 1,500

    Taxes on production and imports 2,000

    GDP = 11500+500-100+1500+3200+200+1500-2000

    = 16300

    National income = GDP - depreciation

    = 16300-2000

    = 14300
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