You've been given the following data: Net exports 4 Net foreign factor income

step 1 This question follows question 16. In question 16, we have calculated the GDP of the US in 2009,

You've been given the following data: Net exports 4...

You've been given the following data: $$ \begin{array}{lr} \hline \text { Net exports } & \$ 4 \\ \text { Net foreign factor income } & 2 \\ \text { Investment } & 185 \\ \text { Government spending } & 195 \\ \text { Consumption } & 500 \\ \text { Depreciation } & 59 \\ \hline \end{array} $$ From these data, calculate GDP, GNP and NDP. LO3

You've been given the following data:
$$
\begin{array}{lr}
\hline \text { Net exports } & \$ 4 \\
\text { Net foreign factor income } & 2 \\
\text { Investment } & 185 \\
\text { Government spending } & 195 \\
\text { Consumption } & 500 \\
\text { Depreciation } & 59 \\
\hline
\end{array}
$$
From these data, calculate GDP, GNP and NDP. LO3

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Key Concepts

Gross Domestic Product (GDP)

GDP represents the total market value of all final goods and services produced within a country's borders over a specific time period. It is calculated using the expenditure approach by summing consumption, investment, government spending, and net exports. This measure provides an overall snapshot of domestic economic activity.

Gross National Product (GNP)

GNP expands on GDP by including the income earned by a country’s residents from overseas investments and excluding the income earned by foreign residents within the country. It measures the total income generated by the nationals of a country regardless of where the production takes place, thereby capturing international income flows.

Depreciation and Net Domestic Product (NDP)

Depreciation represents the wear and tear or consumption of fixed capital over time, indicating the reduction in the value of a country’s capital assets. Net Domestic Product (NDP) is calculated by subtracting depreciation from GDP, offering a measure of the economy's net output that reflects the amount available for sustainable consumption, investment, and growth.

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