Using the above data, determine GDP and NDP by the expenditure method. Also calculate National Income (NI) by the income meth

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Using the above data, determine GDP and NDP by the expenditure method. Also calculate National Income (NI) by the income method.

ANSWERS:

GDP = $388GDP = C + Igross + G + XnetIgross = Inet + depreciation = 33 + 27 = 60GDP = 245 + 60 + 72 + 11 = 388

NDP = $361NDP + C + Inet + G + XnetNDP = 245 + 33 + 72 + 11 = 361NDP = GDP – depreciationNDP = 388 – 27 = 361

NI = $339NI = wages + rents + interest + profitsprofits = corporate profits + proprietor’s incomeprofits = 56 + 33 = 89NI = 223 + 14 + 13 + 89 = 339