National Income Accounts (dollar figures are in billions)
|Expenditures for consumer goods and services||$4,565|
|Government purchases of goods and services||$1,465|
|Social Security taxes||$510|
|Indirect business taxes||$520|
|Corporate income taxes||$185|
|Personal income taxes||$750|
|Corporate retained earnings||$45|
|Net foreign factor income||$20|
|Government transfer payments to households||$690|
|Net interest payments to households||$0|
On the basis of Table 5.1, gross domestic product is
We can find GDP by two method
By Expenditure method and by Income approach method.
We use in expenditure method.
C mean consumtion of good and services. (4565)
I mean gross domestic private investment. (865)
G mean government spendings like purchases. (1465)
X mean export. (825)
M mean import. (740)
we see for the GDP calculation we have to calculate all gross payment and expenditure.
So we apply this formula and find Gross Dometic product.
So our GDP is $6810 Billion's. option 2 is right.
Net investment mean after the depreciation from gross investment.
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