"Unit 2.3The Components of GDP (Assignment)"

Note: This assignment is based on Unit-2, so kindly watch our recorded lecture first before attempting this assignment.

Question No. 1:

The following data summarize the expenditures for the country of XYZ during 2013 in millions of alphabets, the currency of country XYZ.

Gross Private Domestic Investment

$300

Business Fixed Investment

$200

Change in Inventories

$100

Exports

$200

Imports

$200

Personal Consumption Expenditures

$800

Government Consumption Expenditures and Gross Investment

$500

Statistical Discrepancy

$10

Depreciation Expenditures

$50

a)Calculate net exports

b)Calculate GDP

c)Calculate national income

d)Assume that the GDP deflator is 120 and calculate real GDP for 2013.

Answer 1:

a)

b)

c)

d)

Question No. 2:

Given the data below, use theINCOME APPROACH to calculate the following:

Gross Domestic Product (GDP)

Net Domestic Product (NDP)

National Income (NI).

Personal Income (PI)

Disposable Income (DI)

Personal consumption expenditures

Rs.(in Billions) 400

Government purchases

128

Gross private domestic investment

88

Net exports

7

Net foreign factor income earned in the Pakistan

18

Consumption of fixed capital

43

Indirect business taxes

50

Transfer Payments

169

Personal Taxes

32

Corporate income taxes

36

Social security contribution

24

Undistributed corporate profits

22

Answer 2:

Personal consumption expenditures

400

Government purchases

Gross private domestic investment

Net exports

Gross Domestic Product (GDP)

Consumption of fixed capital

Net Domestic Product (NDP)

Net foreign factor income earned in the Pakistan

Indirect business taxes

National Income (NI)

Social security contributions

Corporate income taxes

Undistributed corporate profits

Transfer payments

Personal Income (PI)

Personal Taxes

Disposable Income (DI)