Question

(Table) According to the table, what was the net domestic product for 2010?

GDP Expenditures for 2010:

Expenditure	Billions
Personal consumption	$10,353.5
Gross private domestic investment	$1,769.1
Exports	$1,746.1
Imports	$2,251.5
Government purchases	$2,975.1
Capital consumption allowance	$1,030.2

Answer 1

Solution:-

Formula for calculating GDP (Gross Domestic Product) using Expenditure Approach is as follows:

GDP = C + I + G + NX

Where, C is Private Consumption Expenditure

I is Gross Private Domestic Investment

G is Government Purchases, and

NX is Net Exports that is (Exports less Imports)

Calculate GDP:

GDP = 10,353.5 +1,769.1 + 2,975.1 +(1746.1 – 2,251.5)

        = 15097.7 +(1746.1 – 2,251.5)

        =15097.7-505.4

        = 14,592.3

Gross Private Domestic Investment = Net Private Domestic Investment +.Capital consumption

Net Private Domestic Investment = Gross Private Domestic Investment - Capital consumption

Therefore,

NDP= 14,592.3 -1030.2

        = $13562.1

Thus, The net domestic product for 2010 was $13562.1