Module IV: Measuring The Macroeconomy

Test II. Problem Solving: (50 pts.) 1. Compute the Gross National Product (20 pts.) a) Given the following information, solve (a) the national income (NI); (b) gross domestic product (GDP), with the use of a T-account format. (10 points). (PCE) Personal Consumption Expenditure P 770,261 (CE) Compensation of Employees 800,320 (X) Exports of Goods and Services 820,320 (GDKF) Gross Domestic Capital Formation 590,680 (EDIP) Entrepreneurial and Property Income of Persons 225,944 (GCE) Government Current Expenditures 200,944 (M) Imports of Goods and Services 790,690 (C) Corporate Income 10,628 (GIPE) Government Income from Property and Entrepreneurship 5,000 b) If the net factor income from abroad (NFIA) is equal to 5,000, what is the level of GNP? (5 points) c) If the capital consumption allowance (CCA) and indirect business taxes (IBT) are 191