Economics20825 marksNumerical: GDP and GNI calculationExpenditure approach to GDP calculation
Given the following data for a country (in Rs. billions): Consumption = 500, Investment = 150, Government Spending = 200, Exports = 100, Imports = 80, Net Factor Income from Abroad = 20. a) Calculate GDP using the expenditure approach. b) Calculate GNI. [5+0+0]
Given the following data for a country (in Rs. billions): Consumption = 500, Investment = 150, Government Spending = 200, Exports = 100, Imports = 80, Net Factor Income from Abroad = 20. a) Calculate GDP using the expenditure approach. b) Calculate GNI. [5+0+0]
Item Symbol Value --------------------- Consumption C 500 Investment I 150 Government Spending G 200 Exports X 100 Imports M 80 Net Factor Income from Abroad NFIA 20 Formula: $$GDP = C + I + G + (X - M)$$ Substituting values: $$GDP = 500 + 150 + 200 + (100 - 80)$$ $$GDP = 500 + 150 + 200 + 20$$