1. Calculate GDP using the Income and Expenditure Approach. (all figures are in billions of dollars):ItemAmount ($)Government purchase of goods and services1,721.6Exports1,096.3Receipts of factor income from the rest of the world382.7Depreciation (consumption of fixed capital)990.8Net fixed investments688.2Corporate income taxes265.2Consumption expenditures6,739.4Indirect business taxes664.6Imports1,475.8Payments of factor income to the rest of the world343.7Inventory change56.5Social security contributions702.7Undistributed corporate profits (retained earnings)130.3Government transfer and interest payments1,366.3Personal interest payments286.2Personal taxes1,235.7

GDP by expenditure approach: GDP = C + I + G + (X - M) GDP = Consumption expenditures + Net fixed…

Answered: Calculate GDP using the Income and…

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter7: Taking The Nation's Economic Pulse

Section: Chapter Questions

Problem 4CQ

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1. Calculate GDP using the Income and Expenditure Approach. (all figures are in billions of dollars):

Item	Amount ($)
Government purchase of goods and services	1,721.6
Exports	1,096.3
Receipts of factor income from the rest of the world	382.7
Depreciation (consumption of fixed capital)	990.8
Net fixed investments	688.2
Corporate income taxes	265.2
Consumption expenditures	6,739.4
Indirect business taxes	664.6
Imports	1,475.8
Payments of factor income to the rest of the world	343.7
Inventory change	56.5
Social security contributions	702.7
Undistributed corporate profits (retained earnings)	130.3
Government transfer and interest payments	1,366.3
Personal interest payments	286.2
Personal taxes	1,235.7

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