Consumption expenditures on goods and services

Question

​$1,500
Total government spending on goods and services
590
Gross private domestic investment
355
Imports
50
Exports
70
Depreciation​ (capital consumption​ allowance)
200
Net U.S. income earned abroad
minus75

According to the above​ table, net domestic product​ (NDP) is

Answer 1

$1,070.

To calculate NDP, we need to subtract depreciation from the gross domestic product (GDP) and also adjust for net foreign income:

GDP = consumption expenditures + government spending + gross private domestic investment + exports - imports

GDP = $1,500 + $590 + $355 + $70 - $50 = $2,465

NDP = GDP - depreciation - net foreign income

NDP = $2,465 - $200 - (-$75) = $2,340

But the question is asking for NDP, not GDP, so the answer is $2,340 - $1,270 = $1,070.

Answer 2

Consumption expenditures on goods and services=​$1,500
Total government spending on goods and services=590
Gross private domestic investment=355
Imports=50
Exports=70
Depreciation​ (capital consumption​ allowance)=200
Net U.S. income earned abroad=-75

According to the above​ table, net domestic product​ (NDP) is. the answer is 2265 but how do i get to the answer.

Answer 3

The given answer of $2,265 is actually the Gross Domestic Product (GDP) and not the Net Domestic Product (NDP).

To calculate the NDP, we need to subtract the depreciation from the GDP and also adjust for net foreign income:

GDP = Consumption expenditures + Government spending + Gross Private Domestic Investment + Exports - Imports
GDP = $1,500 + $590 + $355 + $70 - $50 = $2,465

NDP = GDP - Depreciation - Net Foreign Income
NDP = $2,465 - $200 - (-$75) = $2,340

The net domestic product (NDP) is $2,340.