To calculate the Net Domestic Product (NDP), we begin with the Gross Domestic Product (GDP), which can be derived from the expenditure approach:
\[ \text{GDP} = C + I + G + (X - M) \]
Where:
- \(C\) = Consumption Expenditure
- \(I\) = Investment
- \(G\) = Government Spending
- \(X\) = Exports
- \(M\) = Imports
From your data, we have:
- \(C = 10,500\)
- \(I = 2,200\)
- \(G = 3,000\)
- \(X = 1,200\)
- \(M = 1,000\)
Now, substitute the values into the GDP formula:
\[ \text{GDP} = 10,500 + 2,200 + 3,000 + (1,200 - 1,000) \]
Now perform the calculations step by step:
\[ \text{GDP} = 10,500 + 2,200 + 3,000 + 200 \] \[ \text{GDP} = 10,500 + 2,200 + 3,200 \] \[ \text{GDP} = 15,900 \]
Next, we calculate the Net Domestic Product (NDP) by subtracting depreciation from GDP:
\[ \text{NDP} = \text{GDP} - \text{Depreciation} \]
Given that depreciation is \(500\):
\[ \text{NDP} = 15,900 - 500 \] \[ \text{NDP} = 15,400 \]
Therefore, the value of Net Domestic Product (NDP) is 15,400.
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