Re: (VU-Study-Corner) Request

The equation used to calculate GDP is as follows:

GDP = Consumption + Government Expenditures + Investment + Exports - Imports

The components used to calculate GDP include:

Consumption:
-- Durable goods (items expected to last more than three years)
-- Nondurable goods (food and clothing)
-- Services

Government Expenditures:
-- Defense
-- Roads
-- Schools

Investment Spending:
-- Nonresidential (spending on plants and equipment), Residential (single-family and multi-family homes)
-- Business inventories

Net Exports:
-- Exports are added to GDP
-- Imports are deducted from GDP 

The formula for NNP is:

NNP = Market Value of Finished Goods + Market Value of Finished Services - Depreciation

Alternatively, NNP can be calculated as:

NNP = Gross National Product - Depreciation

Let's assume Country XYZ's companies, citizens and entities produce $1 trillion worth of goods and $3 trillion worth of services this year. The assets used to produce those goods and services depreciated by $500 billion. Using the formula above, Country XYZ's NNP is:

NNP = $1 trillion + $3 trillion - $0.5 trillion = $3.5 trillion 

PART A

Output Level

Y = C + I + G + (Exports - Imports) 

Y = 5600 Millions

Consumption Level

C = 450 + 0.80y

C = 4930 Millions

Saving Level by using Injections-Leakages Approach

S + M + T = I + X + G

S = 320 Millions

Part B

Gross National Product (GNP)

GNP = 580 Millions

Net National Product (NNP)

NNP = GNP - Depreciation

NNP = 545 Millions......

On Tue, Jan 22, 2013 at 4:32 PM, Zeeshan Qazi <zeeshan.qazi633@gmail.com> wrote:

ECO401 and PSY101 assighnment solution needed plz send.

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