Answer to Question #56093 in Macroeconomics for NKM

Question

1) The table below provides economic information of Republic of Eastein for 2014
Items Amount ($)

Transfer Payments $1,440
Interest Income $2,900
Capital Consumption Allowance $1,000
Wages $3,200
Gross Investment $3,470
Business Profits $3,900
Indirect Business Taxes $2,900
Rental Income $2,400
Net Exports (Export - Import) $1,120
Government Purchases $4,410
Canadians and firms abroad $1,400
Non Canadians and foreign firms in Canada $700
Household Consumption $7,300

a) Calculate Republic of Eastein’s GDP for 2014 using the expenditure approach.
b) Calculate Republic of Eastein’s GDP for 2014 using the income approach.
c) Calculate Gross National Product for 2014.
d) Determine the Net Domestic Product.
e) Determine the Net Investment.
f) Use the circular flow of money model to explain income approach and
expenditure approach, and relate this to your answers in A and B above.