Question

 

Expenditure categories

Million in Birr

1

Personal Consumption Expenditure(C)

4500

2

Gross private domestic investment (I)

850

3

Gov. purchasing of goods and services (G)

1250

4

Export(X)

750

5

Import(M)

1000

6

Net Factor Income received from abroad (NFIRA)

950

7

Net Factor Income paid from abroad (NFIPA)

1050

8

Indirect Business tax (IBT)

450

9

Depreciation(D)

525

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Based on Above Information calculate

A, Gross Domestic Product

B, Gross National product

C, Net National Income

D, National Income

E, Trade Balance

Answer 1

a.) Gross Domestic Product (GDP)

$GDP = C + I + G + (X-M)$

$=4500+850 +1250+750-1000$

$=6350$

b.)Gross National Product (GNP)

$GNP=C+I+G+(X-M)+NFIR-NFIPA)$

$=4500+850 +1250+(750-1000)+ (950-1050)$

$=6250$

c.)C) Net National Income (NNP)

$NNP=GND-D$

$NNP=C + I + G + (X-M)-D$

$=4500+850 +1250+750-1000- 525$

$NNP=6350-525$

$= 5,825$

d.)National Income (NI)

$NI=NNP-IBT$

$NNP=6350-525-450$

$=5825-450$

$=53375$

e.) Trade Balance (NX)

$Nx=export -import$

$=750-1000$

$=-250$