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    GDP and NDP

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    The table below sets out some data for Country X in 2007.

    Item Amount
    (in billions of dollars)
    Consumption expenditure 289
    Government expenditure 99
    Interest and investment income 33
    Profit of corporations and
    government enterprises 65
    Income from farms and
    unincorporated businesses 40
    Gross investment 146
    Exports 36
    Imports 22
    Wages, salaries, and supplementary
    labor income 275
    Capital consumption allowance 60
    Indirect taxes less subsidies 75

    a. Calculate net exports.

    b. Use the expenditure approach to calculate GDP.

    c. Use the income approach to calculate GDP.

    d. Calculate net domestic product (at factor cost).

    e. Calculate net domestic income (at market price).

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    Solution Preview

    net exports = exports - imports
    net exports = 36 - 22 = 14 billion

    b) ...

    Solution Summary

    The solution determines the GDP and NDP.