(Expenditure Approach to GDP) Given the following annual information about a hypothetical country, answer questions a through d.
Billions of Dollars
Personal consumption expenditures $200
Personal Taxes 50
Government Purchases 50
Gross private domestic investment 40
Government transfer payments 20
a. What is the value of GDP?
b. What is the value of net domestic product?
c. What is the value of net investment?
d. What is the value of net exports?
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<br>Expenditure approach: a method of ...
Characterize the expenditure approach.
GDP - Use the data below to calculate the values for GDP (expenditure approach), GDP (income approach), net domestic income (NDI), personal income (P1), and personal disposable income (PDI).
1. Use the data below to calculate the values for GDP (expenditure approach), GDP (income approach), net domestic income (NDI), personal income (P1), and personal disposable income (PDI). (All values are in billions of dollars.) Indicate the components you use in calculating each of your answers. For example, to calculate net exports, you would indicate that C? Q equals net exports, or 95?89 = 6.
A. Personal expenditures on consumer goods and services $189
B. Corporate profits before taxes 42
C. Exports of goods and services 95
D. Interest and miscellaneous income 30
E. Government current expenditures on goods and services 64
F. Gross, fixed-capital investment 82
G. Net income of farm operators from farm production 4
H. Undistributed corporate profits 17
I. Inventory valuation adjustment ?8
J. Net income on nonfarm, unincorporated business and rent 13
K. Transfer payments 34
L. Capital consumption allowances 39
M. Changes in inventories 3
N. Indirect taxes less subsidies 34
0. Personal taxes and transfer payments to government 62
P. Capital gains 23
Q. Imports of goods and services 89
R. Corporate profit taxes 12
S. Statistical discrepancy 3
T. Wages, salaries, and supplementary labour income 187
a. GDP (expenditure approach) =
b. GDP (income approach) =
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