Question 1: To calculate the value of GDP from the expenditure method, you can use the following equation: GDP = C + In + G + Xn. Do you agree or disagree, and why?
Question 2: The table below shows national income accounting data. All figures in Billions
Compensation of employees $194.2
U.S. exports of goods and services 17.8
Consumption of fixed capital (depreciation) 11.8
Government purchases 59.4
Taxes on production and imports 14.4
Net private domestic investment 52.1
Govt. Transfer payments 13.9
U.S. imports of goods and services 16.5
Personal taxes 40.5
Net foreign factor income 2.2
Personal consumption expenditures 219.1
Statistical discrepancy 0
Rents 42.5
(a) Using the following national income accounting data, compute Gross Domestic Product value by expenditure method.
(b) Compute Net Domestic Product value by any method possible.
(c) Compute National Income by adjustment method.