Suppose the government's national income and product accounts revealed the following information: Expenditure Approach Personal consumption...

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Suppose the government's national income and product accounts revealed the following information: Expenditure Approach Personal consumption expenditure Government consumption expenditure Gross domestic capital formation Exports of goods and services Imports of goods and services Statistical discrepancy Net Factor Income from Abroad Compensation of employees Net operating surplus Depreciation Indirect business taxes less subsidies Amount 1980 088 354 981 541 233 1478 016 1577 727 (109 483) 126 960 725 261 1 468 612 235 845 237 390 a. b. c. Find Pl, personal income, by making the appropriate adjustments to NI. d. Calculate the GNP value. Using the data in the table, verify that the income approach and expenditure approach, yield the same measure of GDP. Set-up the National Income Accounting Procedure. Compute the value of the National Income (NI). Suppose the government's national income and product accounts revealed the following information: Expenditure Approach Personal consumption expenditure Government consumption expenditure Gross domestic capital formation Exports of goods and services Imports of goods and services Statistical discrepancy Net Factor Income from Abroad Compensation of employees Net operating surplus Depreciation Indirect business taxes less subsidies Amount 1980 088 354 981 541 233 1478 016 1577 727 (109 483) 126 960 725 261 1 468 612 235 845 237 390 a. b. c. Find Pl, personal income, by making the appropriate adjustments to NI. d. Calculate the GNP value. Using the data in the table, verify that the income approach and expenditure approach, yield the same measure of GDP. Set-up the National Income Accounting Procedure. Compute the value of the National Income (NI).

Answer rating: 100% (QA)

a To verify that the income approach and expenditure approach yield the same measure of Gross Domestic Product GDP we can use the formula for each app... View the full answer