Table 1: National Income and Product in 2007	$ Billions
GDP	8000
Receipt of factor income from the rest of the world	250
Payments of factor income to the rest of the world	300
Depreciation	900
Indirect taxes minus subsidies	500
Corporate profits minus dividends	500
Social insurance payments	700
Personal interest income received from the government and consumers	300
Transfer payments to persons	1100
Personal taxes	1000

Using Table 1 above, calculate:

(i) Gross National Product (GNP) (3marks)

(ii) Net National Product (NNP) (3marks)

(iii) National Income (NI) (3marks)

2)There are three stages of spending that each income earner must spend his/her income. Explain using appropriate examples the three stages of expenditure. (9 marks)