Question

■The Following is information from the National Income accounts for a hypothetical country:

–GDP RS. 6000 , Gross Investment 800, Net Investment 200, Consumption 4000

–Government purchases of goods and services1100 , Government Budget Surplus 30

■What is

 i. NDP ii. Net Exports iii. Government taxes minus Transfers  iv. Disposable personal Income v. Personal saving

Answer 1

$$Solution$$

The table below shows the calculations on the different formulae; Where

$NDP\implies Net\ Domestic\ product\\ NX\implies\ Net\ Exports\\ TA-TR\implies\ Government\ taxes\ minus\ Transfers\\ Yd \implies\ Disposable\ Personal\ income\\ S\implies\ Savings$