Question

a. Calculate GDP.You may calculate GDP either from the expenditure side or income side of the accounts.

b. Calculate Net National Product. You may assume that GDP = GNP.

Use the following information to answer questions.

Government purchases of goods and services 3,200

Consumption 11,500

Compensation of employees 9,100

Business investment 1,500

Residential investment 500

Corporate profits 3,500

Rent 300

Interest 1,000

Proprietors income 200

Change in business inventories -100

Government transfer payments 1,800

Exports 1,500

Imports 2,000

Depreciation 2,000

Statistical discrepancy 0