Answer to Question #211292 in Macroeconomics for Tammy

Question

2. Given the following data, calculate Net Domestic Product (NDP) at market prices: Gross National Product at market prices= US$ 85,000 Depreciation = US$ 3,000 Net factor income from abroad = US$ 2,000

Answer 1

NDP=GDP- Depreciation

GNP=GDP+Net factor from abroad

US$ 85000=GDP+US$ 2000

GDP=US$ 85000-US$ 2000

GDP=US$ 83000

NDP= GDP-Depreciation

US$ 83,000-US$ 3,000

ANSWER= US$ 80,000