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how to calculate GDP and NDP QUESTION 1. Suppose the government's national income and product accounts revealed the following information: Personal Consumption Expenditures 525 Gross

how to calculate GDP and NDP

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QUESTION 1. Suppose the government's national income and product accounts revealed the following information: Personal Consumption Expenditures 525 Gross private domestic investment 110 Depreciation or Consumption of fixed capital 31 Government purchases 72 Exports 15 Imports 30 Compensation of Employees 462 Proprietor's Income 59 Interest 29 Rents 26 Corporate Profits 75 Corporate Income taxes 28 Dividends 30 Undistributed corporate profits or retained 17 earnings Net foreign factor income (earned) 12 Transfer Payments 33 Social Security contributions 39 Taxes on production and imports (indirect 22 business taxes Personal taxes 71 Personal saving YOU MUST SHOW YOUR WORK TO RECEIVE CREDIT for these questions. A. Calculate GDP. (12.5 points) B. Calculate NDP (Net Domestic Product). (12.5 points)

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