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24 May, 21:21

The following national income data are in billions of dollars.

Disposable income $200

Net private domestic investment 40

U. S. imports 15

National income 300

Personal taxes 31

Net exports 9

Gross private domestic investment 55

Net foreign factor income 10

Statistical discrepancy 0

This nation's GDP is

$315 billion.

$324 billion.

$305 billion.

$367 billion.

+3
Answers (1)
  1. 24 May, 22:52
    0
    Option C ($305 million) is the correct answer.

    Explanation:

    GDP = GNP - Net foreign factor income

    GNP can be calculated by using the following formula

    GNP (FC) = NNP (FC) + depreciation

    NNP (FC) = 300, thus the depreciation is as follows:

    Depreciation = Gross private domestic investment - Net private domestic investment

    = 55 minus 40 = 15

    Now, we can calculate GNP (FC) by substituing the values into the formula

    GNP (FC) = 300 plus 15 = 315

    Now, we can calculate GDP by by substituing the values into the formula.

    GDP = 315 minus 10 = 305

    Thus, the value of U. S. GDP is $305 billion

    Therefore, the correct answer is option C
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