Answer to Question #211057 in Macroeconomics for Ananya

Question

1. Calculate GDP and National Savings from the following data:

1. Compensation of Employees=7937
2. Income of self-employed=1006
3. Rental Income=110
4. Corporate profits=1260
5. Indirect business taxes=994
6. Consumption of fixed capital=1747
7. Factor income received from rest of the world=709
8. Payment of factor income to rest of the world=567
9. Consumption=9765
10. Government Spending=900

Answer 1

$GDP = C + G + I + NX$

C  is consumption or every private consumer spending within the economy of a country.

G are all the government expenditures.

I is the sum of investment a country spent towards capital equipment as well as inventory.

NX = Nation's total exports - total imports or net exports.

 

$GDP = 9765 + 1747 + 110 + 1006 + 900$$GDP = 13528$