Sub part (a):
Calculation of GDP and NDP.
Sub part (a):
Explanation of Solution
GDP income approach can be calculated as follows.
The value of GDP from expenditure approach is $388.
GDP expenditure approach can be calculated as follows
The value of GDP from income approach is $388.
Net domestic product can be calculated as follows.
The value of net domestic product is $361.
Concept introduction:
Gross Domestic Product (GDP): It is the worth of final goods and services produced in an economy within a particular time framework.
Net Domestic Product (NDP): It is the aggregate money value of all final commodities and services produced in the country in a given time period, minus net depreciation.
Sub part (b):
Calculation of national income .
Sub part (b):
Explanation of Solution
National income from NDP can be calculated as follows.
National income is $357.
National income from income and tax can be calculated as follows.
National income is $357.
Concept introduction:
Gross Domestic Product (GDP): It is the worth of final goods and services produced in an economy within a particular time framework.
Net Domestic Product (NDP): It is the aggregate money value of all final commodities and services produced in the country in a given time period, minus net depreciation.
Sub part (c):
Calculation of personal income.
Sub part (c):
Explanation of Solution
Personal income can be calculated as follows.
Personal income is $291.
Sub part (d):
Calculation of disposable income.
Sub part (d):
Explanation of Solution
Disposable income can be calculated as follows.
Disposable income is $265.
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Chapter 7 Solutions
Macroeconomics
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