Suppose you are given the following data for a particular economy (unit: Millions of Euros): Gross National Income mp (GNImp) =1650 Investment (I) = 220 (Iliq) Net investment = 210 Private consumption(C) =1100 Net External Income (NEI) = 0 Net Indirect Taxes (NIT) = 231 Public Spending (G) = 363 Calculate: a) Balance of Goods and Services or Net Exports (NX) and Amortizations/Depreciations (A). b) Net National Product at Base Prices (NNPbp) and Net Domestic Product at Base Prices (NDPbp)
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Suppose you are given the following data for a particular economy (unit:
Millions of Euros):
Gross
Investment (I) = 220
(Iliq) Net investment = 210
Private consumption(C) =1100
Net External Income (NEI) = 0
Net Indirect Taxes (NIT) = 231
Public Spending (G) = 363
Calculate:
a) Balance of Goods and Services or Net Exports (NX) and Amortizations/
b) Net National Product at Base Prices (NNPbp) and Net Domestic Product at Base Prices (NDPbp)
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- Using the following national income accounting data, compute (a) GDP, (b) NDP, and (c) NI. All figures are in billions. Category Billions Compensation of employees U.S. exports of goods and services Consumption of fixed capital Government purchases Taxes on production and imports Net private domestic investment Transfer payments U.S. imports of goods and services $ 224.2 17.8 11.8 59.4 14.4 52.1 13.9 16.5 Personal taxes 40.5 Net foreign factor income Personal consumption expenditures Statistical discrepancy 2.2 249.1 0.0 Instructions: Round your answers to 1 decimal place. a. GDP = $ 373.7 billion in b. NDP = $ 376.3 billion c. NI = $ 378.5 billionQUESTION 2 Refer to the accompanying national income data (in billions of dollars) and answer the following questions. (Show your calculations) Gross Private Domestic Investment $1,593 Personal Taxes 1,113 Transfer Payments Taxes on Production and Imports Corporate Income Taxes Personal Consumption Expenditures Consumption of Fixed Capital US Exports 1,683 695 213 7,304 1,393 1,059 Dividends Government Purchases 434 1,973 Net Foreign Factor Income Undistributed Corporate Profits Social Security Contributions US Imports Statistical Discrepancy 10 141 748 1,483 50 e. Calculate the Net private domestic investment.National income accounting for a certain country in the year for 2020 is given in Table 2. Based on the table, answer the following questions. Amount in $ (million) 180 8,120 3,800 1,320 4,230 12,000 10,120 12,100 8,000 3,120 3,240 Items Net factor income Consumption expenditure Public investments Import Export Government expenditure Wages Interest, rent and profit Indirect taxes Subsidies Depreciation a) By using expenditure approach, calculate Gross Domestic Product (GDP) at market price. b) By using income approach, calculate Gross Domestic Product 9GDP) at market price. c) Based on your understanding on Gross Domestic Product (GDP), explain why do you think that GDP Ís important, and what is the limitation of GDP?
- QUESTION 2 Refer to the accompanying national income data (in billions of dollars) and answer the following questions. (Show your calculations) Gross Private Domestic Investment $1,593 1,113 1,683 Personal Taxes Transfer Payments Taxes on Production and Imports 695 Corporate Income Taxes Personal Consumption Expenditures Consumption of Fixed Capital US Exports 213 7,304 1,393 Dividends 1,059 Government Purchases 434 1,973 Net Foreign Factor Income Undistributed Corporate Profits Social Security Contributions US Imports Statistical Discrepancy 10 141 748 1,483 50 a. Caleulate Net Exports. Does the country face a trade deficit or surplus or neither?National Income Data Spending Category Corporate profits Depreciation Gross private domestic investment Personal taxes Personal saving Government spending Imports Net interest Compensation of employees Rental income Exports Personal consumption expenditures Indirect business taxes Contributions for Social Security (FICA) Transfer payments and other income Proprietors' income Amount (Billions of dollars) 305 479 716 565 120 924 547 337 2,648 19 427 2,966 370 422 Based on the data table, personal income is equal to $ 991 328 billion. Based on the data table, disposable personal income (DI) is equal to $ billion.GDP minus depreciation is the formula used to calculate a- Net national product b- Gross natioal Product c- Gross Domestic Product d- Natioal income
- QUESTION 2 Refer to the accompanying national income data (in billions of dollars) and answer the following questions. (Show your calculations) $1,593 1,113 1,683 695 Gross Private Domestic Investment Personal Taxes Transfer Payments Taxes on Production and Imports Corporate Income Taxes Personal Consumption Expenditures Consumption of Fixed Capital US Exports 213 7,304 1,383 1,059 434 Dividends 1,973 Government Purchases 10 Net Foreign Factor Income Undistributed Corporate Profits Social Security Contributions US Imports Statistical Discrepancy 141 748 1,483 50 a. Calculate Net Exports. Does the country face a frad teficit or surplus or neither? b. Calculate the Gross Domestic Product (GDP) c. Calculate the National Income (NI).E d. Calculate Corporate Profits. e. Calculate the Net private domestic investment.The following data relate to an emerging African country.Item Value('000) KSHSGNP 8,000,000 Depreciation 100,000Indirect Business Taxes 80,000Gross Investment 400,000Total population 30,000Consumption 10,000Personal Income Taxes 800Excise duty 80Personal Income 89,000Net factor incomes from abroad 200,000 Using the above data, calculate: Net National Product and GNP per capita Net investment and Disposable personal income Gross domestic productITEMS RM (millions) Agriculture 18,000 Mining 12,000 Manufacturing 22,000 Constructions 8,000 Electricity, gas and water 1,800 Transportation and communication 900 Indirect tax 800 Subsidies 700 Government services 1,700 Other services 900 Capital consumption 500 Income received from abroad 750 Income paid to abroad 450 Based on the table above, calculate: a) Gross Domestic Product (GDP) at market price. b) Gross Domestic Product (GDP) at factor cost. c) Gross National Product (GNP) at factor cost. d) national income. e) What approach did you use to make calculation in question (i)? b) The table below shows national income data for a country R. Year Nominal GNP (RM million) Price Index 2017 16 400 100 2018 18 800 108 i) Calculate real income for 2017 and 2018. ii) How much growth rate from year 2017 to 2018?
- Actual National Income (Y) (Billions of $) 100 200 300 400 500 600 700 800 Net Exports Imports (Billions of $) (Billions of $) 95 140 185 230 275 320 365 410 105 60 15 -30 -75 -120 -165 -210 b. Use the line drawing tool to draw and label the net export function in the graph to the right. Make sure that line passes through all the points from the table. Carefully follow the instructions above, and only draw the required objects. The net export function is downward sloping because OA X-IM rises as real national income rises OB. increases in real national income lead to increases in IM and X. C. X-IM falls as real national income rises. OD. increases in real national income lead to increases in exports but leave imports unchanged. c. Suppose desired imports are given by IM=m+m,Y. Using the data in the table, determine the values of m, and m, (Round your response for m, to two decimal places and round your response for me to the nearest whole value) The value of m, is Net Exports (5…Based on the following table Private consumption expenditure (C) Gross private investment Expenditure (1) Government Expenditure (G) Exports (X) Imports (M) Net factor income from the rest of the world 5 Depreciation 150 Indirect Taxes 60 Subsidies 40 Transfer payments to households 10 35 Personal Income Taxes 30 Undistributed dividends 20 25 15. a) Find Net National ProductPrivate consumption expenditure (C) 150 Indirect Taxes 20 Gross private investment Expenditure (I) 60 Subsidies 5 Government Expenditure (G) 40 Transfer payments to households 10 Exports (X) 35 Personal Income Taxes 25 Imports (M) 30 Undistributed dividends 5 Net factor income from the rest of the world 5 Depreciation 5 Find Net National Product and Disposable Income