Measuring Total Output and Income
Review and Practice
Given the following nominal data, compute GDP. Assume net factor incomes from abroad = 0 (that is, GDP = GNP).
Nominal Data for GDP and NNP $ Billions Consumption 2,799.8 Depreciation 481.6 Exports 376.2 Gross private domestic investment 671.0 Indirect taxes 331.4 Government purchases 869.7 Government transfer payments 947.8 Imports 481.7
Find data for each of the following countries on real GDP and population. Use the data to calculate the GDP per capita for each of the following countries:
- United States
- Now construct a bar graph showing your results in the previous problem, organizing the countries from the highest to the lowest GNP per capita, with countries on the horizontal axis and GNP per capita on the vertical axis.
Suppose Country A has a GDP of $4 trillion. Residents of this country earn $500 million from assets they own in foreign countries. Residents of foreign countries earn $300 million from assets they own in Country A. Compute:
Suppose a country's GDP equals $500 billion for a particular year. Economists in the country estimate that household production equals 40% of GDP.
A miner extracts iron from the earth. A steel mill converts the iron to steel beams for use in construction. A construction company uses the steel beams to make a building. Assume that the total product of these firms represents the only components of the building and that they will have no other uses. Complete the following table:
Company Product Total Sales Value Added Acme Mining iron ore $100,000 ? Fuller Mill steel beams $175,000 ? Crane Construction building $1,100,000 ? Total Value Added ?
You are given the data below for 2008 for the imaginary country of Amagre, whose currency is the G.
Consumption 350 billion G Transfer payments 100 billion G Investment 100 billion G Government purchases 200 billion G Exports 50 billion G Imports 150 billion G Bond purchases 200 billion G Earnings on foreign investments 75 billion G Foreign earnings on Amagre investment 25 billion G
b. Compute net exports.
c. Compute GDP.
d. Compute GNP.