Table: Hypothetical New Zealand's National Income and Product Accounts DataCategory Billions of DollarsConsumption (personal consumption expenditures) 600Investment (gross private domestic investment) 200Government spending (government expenditures) 200Foreign income payments to domestic factors 50Domestic income payments to foreign factors 40Imports 200Exports 100Net unilateral transfers 10Based on the table, the GDP is ______ billions of dollars, while GNDI is _______billions of dollars.[Hint: see question 2 of in-class quiz - week 8A, page 15 of lecture 5A]Group of answer choices900; 9201100; 1100900; 9001100; 1120900; 990
Question
Table: Hypothetical New Zealand's National Income and Product Accounts DataCategory Billions of DollarsConsumption (personal consumption expenditures) 600Investment (gross private domestic investment) 200Government spending (government expenditures) 200Foreign income payments to domestic factors 50Domestic income payments to foreign factors 40Imports 200Exports 100Net unilateral transfers 10Based on the table, the GDP is ______ billions of dollars, while GNDI is _______billions of dollars.[Hint: see question 2 of in-class quiz - week 8A, page 15 of lecture 5A]Group of answer choices900; 9201100; 1100900; 9001100; 1120900; 990
Solution
To calculate the Gross Domestic Product (GDP), we need to add up Consumption, Investment, Government spending, and Net exports (Exports - Imports).
So, GDP = Consumption + Investment + Government spending + (Exports - Imports) = 600 + 200 + 200 + (100 - 200) = 900 billion dollars
Gross National Disposable Income (GNDI) is calculated by adding GDP, Net unilateral transfers, and Net income from abroad (Domestic income payments to foreign factors - Foreign income payments to domestic factors).
So, GNDI = GDP + Net unilateral transfers + (Domestic income payments to foreign factors - Foreign income payments to domestic factors) = 900 + 10 + (40 - 50) = 900 billion dollars
So, the GDP is 900 billion dollars, while GNDI is 900 billion dollars. Therefore, the correct answer is "900; 900".
Similar Questions
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