spliff.Life
Active member
im in macro econ, pretty basic but i cant seem to solve this
I cant get the GDP by the expendature approach to equal that of the income approach
for exp. I get 388 (245+27+33+72+11) and income i get 400 (233+14+13+33+21+37+18+27+4)
Below
is a list of domestic output and national income figures for a given year. All figures are in billions. The questions that follow ask you to
determine the major national income measures by both the expenditure and income
methods. The results you obtain with the
different methods should be the same.
(Hint: Use Figure 8-3 and Table 8-2 of the text as a guide).
Personal consumption expenditures
Net US
income earned abroad
Government transfer payments
Rents
Statistical discrepancy
Consumption of fixed capital (depreciation)
Social security contributions
Interest
Proprietors’ income
Net exports
Business transfers
Compensation of employees (wages)
Indirect business taxes
Corporate retained earnings
Personal income taxes
Corporate income taxes
Corporate profits (after taxes)
Government purchases
Net private domestic investment (excluding depreciation)
Other business income adjustments
$245
4
12
14
4
27
20
13
33
11
12
223
18
21
26
19
37
72
33
4
a. Using the above data, determine GDP by both the expenditure and
the income approaches. Then determine
NDP.
b. Now determine NI: first, by making the required additions and
subtractions from GDP; and second, by adding up the types of income and taxes
that make up NI.
c. Adjust NI (from part b) as required to obtain PI.
d. Adjust PI (from part c) as required to obtain DI.
Where did i mess up?
I cant get the GDP by the expendature approach to equal that of the income approach
for exp. I get 388 (245+27+33+72+11) and income i get 400 (233+14+13+33+21+37+18+27+4)
Below
is a list of domestic output and national income figures for a given year. All figures are in billions. The questions that follow ask you to
determine the major national income measures by both the expenditure and income
methods. The results you obtain with the
different methods should be the same.
(Hint: Use Figure 8-3 and Table 8-2 of the text as a guide).
Personal consumption expenditures
Net US
income earned abroad
Government transfer payments
Rents
Statistical discrepancy
Consumption of fixed capital (depreciation)
Social security contributions
Interest
Proprietors’ income
Net exports
Business transfers
Compensation of employees (wages)
Indirect business taxes
Corporate retained earnings
Personal income taxes
Corporate income taxes
Corporate profits (after taxes)
Government purchases
Net private domestic investment (excluding depreciation)
Other business income adjustments
$245
4
12
14
4
27
20
13
33
11
12
223
18
21
26
19
37
72
33
4
a. Using the above data, determine GDP by both the expenditure and
the income approaches. Then determine
NDP.
b. Now determine NI: first, by making the required additions and
subtractions from GDP; and second, by adding up the types of income and taxes
that make up NI.
c. Adjust NI (from part b) as required to obtain PI.
d. Adjust PI (from part c) as required to obtain DI.
Where did i mess up?
