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the following table shows national income by the type of income for the hypothetical economy of highlands. income data for highlands type of income amount of income (billions of dollars) rent $300 wages 800 interest 150 profits and losses 400 indirect business taxes 70 depreciation 180 net foreign interest income 50 instructions: enter your answers as a whole number. a. what is the value of national income for highlands? $ 1770 billion b. using the income approach, what is the value of nominal gdp for highlands?

Respuesta :

a. National income adds up all of the wages, rents, interest, and profits and losses earned from our resources. National Income = Wages + Rents + Interest + Profits and Losses. Using the values in the table, we can see that National Income = $800 + $300 + $150 + $400 = $1,650 billion.

b. From the income approach, GDP = National Income + Indirect Business Taxes + Depreciation + Net Foreign Factor Income. Having already found national income and using the values from the table, we can find Nominal GDP = $1,650 + $70 + $180 + $50 = $1,950 billion.

Gross domestic product (GDP) is one of the maximum common methods to measure a rustic's monetary health. The GDP definition is the value of all very last goods and offerings produced in a country in a given yr. It includes numerous factors, including investments, intake, government spending, and exports minus imports.

GDP is the most usually used degree of monetary interest. the primary basic idea of GDP became invented at the top of the 18th century. The cutting-edge concept was developed with the aid of the yank economist Simon Kuznets in 1934 and adopted as the main degree of a country's economic system at the Bretton Woods convention in 1944.

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