Answer to Question #313286 in Macroeconomics for kindye

Question #313286

 

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


1
Expert's answer
2022-03-21T12:53:39-0400

a.) Gross Domestic Product (GDP)

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

=4500+850+1250+7501000=4500+850 +1250+750-1000

=6350=6350


b.)Gross National Product (GNP)

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

=4500+850+1250+(7501000)+(9501050)=4500+850 +1250+(750-1000)+ (950-1050)

=6250=6250


c.)C) Net National Income (NNP)

NNP=GNDDNNP=GND-D

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

=4500+850+1250+7501000525=4500+850 +1250+750-1000- 525

NNP=6350525NNP=6350-525

=5,825= 5,825


d.)National Income (NI)

NI=NNPIBTNI=NNP-IBT

NNP=6350525450NNP=6350-525-450

=5825450=5825-450

=53375=53375


e.) Trade Balance (NX)

Nx=exportimportNx=export -import

=7501000=750-1000

=250=-250

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