Answer to Question #254988 in Macroeconomics for Katlego

Question

Consumption expenditure 138 Investment expenditure 98 Government expenditure 57 Net exports 64 Primary income payments to the rest of the world 21 Primary income receipts from the rest of the world 13 Indirect taxes 28 Subsidies 10 Consumption of fixed capital 12 Calculate the value of GDP at market price Calculate the value of gross domestic expenditure Calculate the value of net national income at factor cost

Answer 1

. Expenditure Method GNPFC = GNPMP - Net Indirect Taxes Private Final consumption Expenditure + (Net 

Domestic capital formation + consumption of fixed capital) + Govt. Final consumption Expenditure + Net Exports + 

Net Factor Income from Abroad - Net Indirect Taxes = 1100 +2600 + (500 +100) + (-) 100 + (-)50 – 250 = 3900