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 formula for calculating NDP is as follows:
NDP = GDP - Depreciation
Therefore, to calculate NDP using the given figures:
GDP = Consumption expenditures + Total government spending + Gross private domestic investment + Exports - Imports + Net U.S. income earned abroad
GDP = $1,500 + $590 + $355 + $70 - $50 - $75
GDP = $2,340
NDP = GDP - Depreciation
NDP = $2,340 - $200
NDP = $2,140
Therefore, the net domestic product (NDP) is $2,140.
No the answer is $2265.
I apologize for my mistake earlier. The correct calculation for net domestic product (NDP) is as follows:
NDP = GDP - Depreciation
GDP = Consumption expenditures + Total government spending + Gross private domestic investment + Exports - Imports + Net U.S. income earned abroad
GDP = $1,500 + $590 + $355 + $70 - $50 - $75
GDP = $2,340
NDP = GDP - Depreciation
NDP = $2,340 - $200
NDP = $2,140
However, the given answer is $2,265, which is not possible based on the given figures. It is possible that there is some missing information or a mistake in the given answer.
Base on my understanding, Net U.S. income earned abroad=-75 should not be included in the caculation that you will get 2265.
Thank you for clarifying. Assuming that Net U.S. income earned abroad should not be included in the calculation, the correct calculation for net domestic product (NDP) is as follows:
NDP = (Consumption expenditures + Total government spending + Gross private domestic investment) - Depreciation
NDP = ($1,500 + $590 + $355) - $200
NDP = $2,245
Therefore, the net domestic product (NDP) based on the given figures without including Net U.S. income earned abroad is $2,245. I apologize for any confusion earlier.
you mising the net export in your calculation for GDP which is 70-50-20
I apologize for my mistake earlier. Thank you for pointing out the error.
The correct calculation of GDP considering net exports is:
GDP = Consumption expenditures + Total government spending + Gross private domestic investment + Exports - Imports + Net U.S. income earned abroad
GDP = $1,500 + $590 + $355 + $70 - $50 - $75
GDP = $2,340 - $20
GDP = $2,320
Therefore, the net domestic product (NDP) is:
NDP = GDP - Depreciation
NDP = $2,320 - $200
NDP = $2,120
So, the NDP is $2,120 when considering the given values for consumption expenditures, government spending, gross private domestic investment, imports, exports, depreciation, and net U.S. income earned abroad. I apologize for the confusion.