Answer to Question #123002 in Macroeconomics for Nini

Question

Given information for Country X as below:

Details
$ (million)
Consumers consumption =30
Net Investment=20
Government Expenditure=30
Export=20
Import=10
Depreciation=10
Indirect taxes=25
Subsidies=118


1)Calculate Gross Domestic Product (GDP) market price for Country X

2)Calculate Gross Domestic Product (GDP) factor cost for Country X

Answer 1

C $=$ consumption (household) expenditure

I $=$ investment expenditure

G $=$ government expenditure

x-m $=$ net exports that is exports - imports

IT $=$ indirect taxes

S $=$ subsidies

A) GDP(mp)$=$ $C + I + G + (x-m)$

$=30+20+30+(30-20)$

$=90$

B) GDP(fc)$=C + I + G + (x-m) - IT + S$

$=$ $30+20+30+(30-20)-25+118$

$=183$