Given the following hypothetical data, where C = $3,000; I = $1,200; G = $2,000; X − M = −$500; depreciation = $200; and transfer payments = $800, where C = consumption; I = investment; G = government purchases; X = exports; and M = imports, net domestic product (NDP) is _____

Question

Quizplus · Accepted Answer

Net Domestic Product (NDP) is calculated as GDP minus depreciation. GDP is calculated as C + I + G + (X - M). So, GDP = $3,000 + $1,200 + $2,000 - $500 = $5,700. NDP = GDP - depreciation = $5,700 - $200 = $5,500.

Given the Following Hypothetical Data, Where C = $3,000; I