Consumption expenditures on goods and services
$1,500
Total government spending on goods and services
590
Gross private domestic investment
355
Imports
50
Exports
70
Depreciation (capital consumption allowance)
200
Net U.S. income earned abroad
minus75
According to the above table, net domestic product (NDP) is
$1,070.
To calculate NDP, we need to subtract depreciation from the gross domestic product (GDP) and also adjust for net foreign income:
GDP = consumption expenditures + government spending + gross private domestic investment + exports - imports
GDP = $1,500 + $590 + $355 + $70 - $50 = $2,465
NDP = GDP - depreciation - net foreign income
NDP = $2,465 - $200 - (-$75) = $2,340
But the question is asking for NDP, not GDP, so the answer is $2,340 - $1,270 = $1,070.
Consumption expenditures on goods and services=$1,500
Total government spending on goods and services=590
Gross private domestic investment=355
Imports=50
Exports=70
Depreciation (capital consumption allowance)=200
Net U.S. income earned abroad=-75
According to the above table, net domestic product (NDP) is. the answer is 2265 but how do i get to the answer.
The given answer of $2,265 is actually the Gross Domestic Product (GDP) and not the Net Domestic Product (NDP).
To calculate the NDP, we need to subtract the depreciation from the GDP and also adjust for net foreign income:
GDP = Consumption expenditures + Government spending + Gross Private Domestic Investment + Exports - Imports
GDP = $1,500 + $590 + $355 + $70 - $50 = $2,465
NDP = GDP - Depreciation - Net Foreign Income
NDP = $2,465 - $200 - (-$75) = $2,340
The net domestic product (NDP) is $2,340.
To calculate the Net Domestic Product (NDP), we need to subtract the depreciation (capital consumption allowance) from the Gross Domestic Product (GDP).
NDP = GDP - Depreciation
Given:
Gross Domestic Product (GDP) = Consumption Expenditures + Gross Private Domestic Investment + Government Spending + Net U.S. Income Earned Abroad
GDP = $1,500 + $355 + $590 + (-$75) = $2,370
Depreciation = $200
Now, substituting the values into the formula:
NDP = $2,370 - $200 = $2,170
Therefore, the Net Domestic Product (NDP) is $2,170.