Given the following information answer the following questions:
Personal Consumption Expenditures = 1000
Compensation to Employees = 900
Gross Domestic Private Investment = 300
Gross Business Fixed Investment = 250
Net Operating Surplus = 250
Government Purchases of Goods and Services = 330
Taxes on Imports and Production = 200
Net exports = -30
Consumption of Fixed capital=250
a) What is the value of GDP measured in terms of spending?
b) What is the value of GDP measure in terms of income (expenses)?
c) What is the value of Net Business Fixed Investment?
d) What is the value of the statistical discrepancy?
GDP=Personal Consumption Expenditures +Gross Domestic Private Investment+Gross Business Fixed Investment+Government Purchases of Goods and Services+NX
By Income method
GDP=Compensation to Employees+Net Operating Surplus +Consumption of Fixed capital+Taxes on Imports and Production
Net business investment=Gross Business Fixed Investment-Consumption of Fixed capital
Value of statistical discrepancy= GDP by expenditure method- GDP by income method
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