Can anyone answer this question please? thank you
(a) Define Gross Domestic Product and Gross National Product.
(b) Are national income statistics good indicators of comparative standard of living?
Can anyone answer this question please? thank you
(a) Define Gross Domestic Product and Gross National Product.
(b) Are national income statistics good indicators of comparative standard of living?
Related textbook solutions
Related questions
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5. The income approach The following table shows macroeconomic data for a hypothetical country. All figures are in billions of dollars.
National income can also be calculated based on disposable income. Use the following table to derive personal income and national income (in billions of dollars). Specify what needs to be added to disposable income to arrive at personal income, and explain how personal income should be adjusted to find national income.
National income is the total amount earned by the citizens of a country, while gross domestic product is the total value of goods and services produced within a country. To determine the gross domestic product, you have to make some adjustments to national income. Use the following table to derive gross domestic product and, as part of the process, net domestic product (NDP) (in billions of dollars). Again, specify what should be added to and subtracted from national income to arrive at the net domestic product, and what should be added to the net domestic product to arrive at the gross domestic product.
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| Table 1.7.5. Relation of Gross Domestic Product, Gross National Product, Net National Product, National Income, and Personal Income | |||||
| Line | 2015 | 2016 | |||
| III | IV | I | II | ||
| 1 | Gross domestic product (GDP) | 18141.9 | 18222.8 | 18281.6 | 18436.5 |
| 4 | Gross national product | 18332.5 | 18434.1 | 18454.2 | 18632.5 |
| 14 | Net national product | 15488.4 | 15571.4 | 15580.6 | 15732.4 |
| 16 | National income | 15724.4 | 15836.2 | 15844.9 | 15956.6 |
| 25 | Personal income | 15556.1 | 15690.2 | 15740.1 | 15900 |
Part 2: Income Approach to Calculating GDP
What is the difference between GDP and GNP? What is the difference in what the GDP measures compared to GNP?
Based on the table, what calculations must you make to determine GNP from GDP?
What is national income (NI)? What does NI measure?
Which was higher in this year, GNP or NI? By how much?
What calculations must you make to determine NI from GNP?
NI is composed of a number of categories. What category makes up the largest portion of NI?
