MACROECONOMICS (LOOSELEAF)-PACKAGE
13th Edition
ISBN: 9781337492317
Author: Baumol
Publisher: CENGAGE L
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Chapter 8.A, Problem 2TY
To determine
To draw: The versions of said tables showing
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The national accounts of Parchment Paradise are kept on (you guessed it) parchment.
A fire in the statistics office destroys some accounts, leaving only the data on the right.
Calculate GDP (expenditure approach) and depreciation.
GDP (expenditure approach) is $ 7250.
Depreciation is $
C
Item
GDP (income approach)
Consumption expenditure
Indirect taxes less subsidies
Interest, rent, and profit
Investment
Government expenditure
Wages
Net factor income from abroad
Net exports
(dollars)
7,050
7,300
700
230
160
190
6,000
100
- 400
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
billion
You are given the following information for a certain economy:
SB
Compensation of Employees
Net Interest Income
Depreciation
Indirect Taxes
Subsidies
Corporate Profits
Proprietor's Income
Rental Income
Payments of Factor Income to the Rest of the World
Receipt of Factor Income from the Rest of the World
Use the information above to calculate:
A.
B.
C.
i. National Income
ii. Indirect Taxes minus Subsidies
iii. Net Factor Payments to the Rest of the World
iv. GDP
240
50
15
100
80
350
100
210
450
300
Outline TWO (2) uses of National Income statistics.
Explain FOUR (4) limitations that these statistics have, in determining a country
economic welfare.
(1
Chapter 8 Solutions
MACROECONOMICS (LOOSELEAF)-PACKAGE
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