Answer to Question #64459 in Other Economics for Junaid Amjad
Question #64459
The following is the information from the national income accounts for a hypothetical country:
GDP Rs. 6000.00
Gross Investment 800.00
Net Investment 200.00
Consumption 4000.00
Govt. purchases of goods & services 1100.00
Govt. Budget Surplus 30.00
What is
a) NDP
b) Net exports
c) Govt. taxes minus transfers
c) Disposable personal income
e) Personal Saving.
GDP Rs. 6000.00
Gross Investment 800.00
Net Investment 200.00
Consumption 4000.00
Govt. purchases of goods & services 1100.00
Govt. Budget Surplus 30.00
What is
a) NDP
b) Net exports
c) Govt. taxes minus transfers
c) Disposable personal income
e) Personal Saving.
Expert's answer
GDP: Y = Rs. 6000,
Gross Investment I = 800,
Net Investment NI = 200,
Consumption C = 4000,
Govt. purchases of goods & services G = 1100,
Govt. Budget Surplus BS = T - G = 30.
a) Depreciation = I - NI = 800 - 200 = 600.
NDP = Y - depreciation = 6000 - 600 = 5400.
b) Net exports NX = Y - C - I - G = 6000 - 4000 - 800 - 1100 = 100.
c) Govt. taxes minus transfers T = G + BS = 1100 + 30 = 1130.
c) Disposable personal income Yd = Y - T = 6000 - 1130 = 4870.
e) Personal Saving S = Yd - C = 4870 - 4000 = 870.
Gross Investment I = 800,
Net Investment NI = 200,
Consumption C = 4000,
Govt. purchases of goods & services G = 1100,
Govt. Budget Surplus BS = T - G = 30.
a) Depreciation = I - NI = 800 - 200 = 600.
NDP = Y - depreciation = 6000 - 600 = 5400.
b) Net exports NX = Y - C - I - G = 6000 - 4000 - 800 - 1100 = 100.
c) Govt. taxes minus transfers T = G + BS = 1100 + 30 = 1130.
c) Disposable personal income Yd = Y - T = 6000 - 1130 = 4870.
e) Personal Saving S = Yd - C = 4870 - 4000 = 870.
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