Question

(C) is 800, (I) 300, (X) 150, imoprt (M) 250. the economy receives 130 of factor income payments from nonresidents and makes factor payments of 50 to nonresidents and suppose that the economy receives 120 in transfers from nonresidents and makes 0 transfers to nonresidents.

Compute GDP, PIB (Primary Income Balance), GNI (Gross National Income), SIB (Secondary Income Balance), and GNDI (Gross National Disposable Income)

Answer 1

GDP : The Gross Domestic product is defined as the market value of all goods and services produced in the domestic economy during a period of one year, plus income earned by the foreigners minus income earned abroad by nationals.

GDP =C+I+( X-M) 000

=800 + 300 + (150-250) = 1100-100=1000

PIB : Primary income consists of investment income and compensation of employees CE.

i.e., =300

GNI: GNI is same as GDP plus income earned abroad by nationals minus income earned locally by foreigners.

GNI = GDP

= 1000

SIB: The secondary income consist of current transfers between residents and non residents.

it can be 130-50 = 80

GNDI = GDP + Net current trnsfers from abroad.

= 1000+120

= 1120.