Ask Question
23 June, 04:19

Suppose one has data for the following categories: net interest, government spending, corporate profits, net exports, gross private domestic investment, rental income, and personal consumption expenditures. Which measure of GDP can be calculated?

+2
Answers (1)
  1. 23 June, 06:10
    0
    Expenditures approach

    Explanation:

    Under expenditures approach:

    GDP = C + I + G + NX

    Where,

    GDP = Gross Domestic Production

    C = Personal Consumption - household spending

    I = Private Investment

    G = Government Consumption and investment

    NX = Net Exports (Total export - Total import)

    Under the Income approach:

    GDP = Wages + Compensation of employees + Rents + Profits + Interest + Indirect business taxes + Depreciation

    Note: Sufficient data is not provided for the Income approach so, GDP is calculated under the expenditures approach.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Suppose one has data for the following categories: net interest, government spending, corporate profits, net exports, gross private ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers