Answer to Question #292615 in Macroeconomics for Muneeb

Question

Calculate the GDP using EXPENDITURE APPROACH with the following hypothetical data:

Personal Consumption 3657

Depreciation 400

Wages 3254

Indirect Business Taxes 500

Interest 530

Domestic Investment 741

Government Expenditure 1098

Rental Income 17

Corporate Profits 744

Exports 673

Imports 704

Net Factor Payment 20

Answer 1

Y = C + I + G + NX

Y = 3,657 + 741 + 1,098 + (673 – 704)

Y = 3,657 + 741 + 1,098 – 31

Y = 5,465