The Gross Domestic Production for 2006 is listed below:

Question

Compensation for employees = K2550.9 million
Private Consumption = K7959.0 million
Fixed Capital Formation = K2652.6 million
Gross Operating Surplus = K11994.5 million
Domestic Factor Income = K985.0 million
Government Consumption = K2837.6 million
Net exports = K3447.3 million
Net Factor Income= K4325.5

From the information given above answer the following questions:
1. Calculate the Gross Domestic Production (GDP) using the Expenditure Method.
2. Calculate Gross National Production (GNP)

Showing full work, including Showing how you get new figures

Answer 1

1. To calculate GDP using the Expenditure Method:

GDP = Private Consumption + Government Consumption + Fixed Capital Formation + Net Exports
GDP = K7959.0 million + K2837.6 million + K2652.6 million + K3447.3 million
GDP = K16896.5 million

Therefore, the GDP using the Expenditure Method for 2006 is K16896.5 million.

2. To calculate GNP:

GNP = GDP + Net Factor Income
GNP = K16896.5 million + K4325.5 million
GNP = K21222.0 million

Therefore, the GNP for 2006 is K21222.0 million.

Answer 2

According to the GDP for 2006, find the:
Consumption expenditure (C)
Investment expenditure (I)
government expenditure (G)
Export (X)
Import (M)

Answer 3

To find the different components of the GDP based on the information given:

Private Consumption (C) = K7959.0 million
Government Consumption (G) = K2837.6 million
Fixed Capital Formation (I) = K2652.6 million
Net Exports (X - M) = K3447.3 million

Since Net Exports is given as a single figure, we need to calculate Export (X) and Import (M) separately.

Net Exports (X - M) = X - M
3447.3 = X - M

We know that Net Factor Income = exports - imports
4325.5 = X - M
X - M = 4325.5

Now we can solve the system of equations to find Export (X) and Import (M):

X - M = 4325.5
X - M = 3447.3

By solving these equations, we find:
X = 3886.4 million
M = 561.1 million

Therefore:
Consumption expenditure (C) = K7959.0 million
Investment expenditure (I) = K2652.6 million
Government expenditure (G) = K2837.6 million
Export (X) = K3886.4 million
Import (M) = K561.1 million

Answer 4

Pardon not government consumption but find the government expenditure

Answer 5

To find the government expenditure based on the GDP for 2006:

Government Expenditure = Government Consumption + Government Investment

Given that Government Consumption is K2837.6 million, we need to find Government Investment.

Government Investment = Gross Operating Surplus - Compensation for Employees - Domestic Factor Income

Government Investment = K11994.5 million - K2550.9 million - K985.0 million
Government Investment = K9338.6 million

Now we can calculate Government Expenditure:

Government Expenditure = Government Consumption + Government Investment
Government Expenditure = K2837.6 million + K9338.6 million
Government Expenditure = K12176.2 million

Therefore, the government expenditure for 2006 is K12176.2 million.