Question

The data below relate to the economic performance of Examland economy for the year 2006. Item Amount in billions of Shs.

Government Purchase 2,250

Corporate profits 1,000

Consumptions of fixed capital 700

Gross private domestic investment 1,500

Personal taxes 400

Personal savings 500

Imports 800

Net interests 350

Rental income 750

Exports 900

Personal consumption expenditure 5,000

Dividends 300

Indirect business taxes 600

Contributions to social security 560

Transfer payments to Households 850

i) Calculate GNP using the expenditure approach.

ii) Determine National Income (NI)

iii} Calculate Disposable personal income (DPI)