# I am not sure how to compute the GDP by using the expenditure and income method. I am having…

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I am not sure how to compute the GDP by using the expenditure and income method. I am having… 1 answer below » I am not sure how to compute the GDP by using the expenditure and income method. I am having difficulty understanding where each item should be categorized under. Document Preview: Below is a list of domestic output and national income figures for a given year. All figures are in billions. The questions that follow ask you to determine the major national income measures by both the expenditure and income methods. The results you obtain with the different methods should be View complete question » I am not sure how to compute the GDP by using the expenditure and income method. I am having difficulty understanding where each item should be categorized under. Document Preview: Below is a list of domestic output and national income figures for a given year. All figures are in billions. The questions that follow ask you to determine the major national income measures by both the expenditure and income methods. The results you obtain with the different methods should be the same.

Category

Value

Personal consumption expenditures

$245

Net foreign factor income

4

Transfer payments

12

Rents

14

Statistical discrepancy

8

Consumption of fixed capital (depreciation)

27

Social Security contributions

20

Interest

13

Proprietors’ income

33

Net exports

11

Dividends

16

Compensation of employees

223

Taxes on production and imports

18

Undistributed corporate profits

21

Personal taxes

26

Corporate income taxes

19

Corporate profits

56

Government purchases

72

Net private domestic investment

33

Personal saving

20

a. Using the above data, determine GDP by both the expenditure and the income approaches and then determine NDP. Instructions: Enter only whole numbers. GDP, the expenditure approach: $ billion GDP, the income approach: $ billion NDP: $ billion b. Now determine NI: first, by making the required additions and subtractions from GDP (Method 1), and second, by adding up the types of income and taxes that make up NI (Method 2). Instructions: Enter only whole numbers. Method 1: $ billion Method 2: $ billion c. Adjust NI (from part b) as required to obtain PI. Instructions: Enter only whole numbers. PI = $ billion d. Adjust PI (from part c) as required to obtain DI. Instructions: Enter only whole numbers.. DI = $ billion Attachments: GDP.docx View less » Sep 03 2015 11:27 PM