Answer to Question #305084 in Macroeconomics for Maya

Question #305084

Using the following data($ billions) for a given year and assuming that GDP equals GNP,calculate (a) gross domestic product (b) national income (c) net national income (d) indirect business taxes.

1.consumption spending = $8000

2.interest income = 500

3.rental income = 200

4.investment spending = 2,500

5.profits = 2,000

6.wages salaries = $ 7000

7.depreciation =1550

8.government spending =2000

9.net export spending = -450


1
Expert's answer
2022-03-03T12:07:37-0500

If GDP is the same as GNP


A) GDP=C+I+G+XnGDP=C+I+G+X_n

GDP=$8000+$2500+$2000$450GDP=\$8000+\$2500+\$2000-\$450

GDP=$12050GDP=\$12050


B) National income=

w+r+i+π+Tbw+r+i+\pi+Tb

Where Tb is indirect business tax

NI=$7000+$200+$500+$2000+TbNI=\$7000+\$200+\$500+\$2000+TbTbTbTbTbTbTbTbTbTTbTbTbTbTbTbTTbTbTbTb

NI=$11700+TbNI=\$11700+Tb


C) Net national product= GDPDGDP-D

Where D is depreciation.

NNP=$12050$1550NNP=\$12050-\$1550

NNP=$10500NNP=\$10500


D) Indirect business tax

NI=NNPTbNI=NNP-Tb

but NI=$11700+TbNI=\$11700+Tb


$11700+Tb=$10500Tb\therefore \$11700+Tb=\$10500-Tb

Tb=$600Tb=-\$600


NI=$11700$600=$11100NI=\$11700-\$600=\$11100


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