Answer the question on the basis of the following data.All figures are in billions of dollars: $\begin{array}{llcc}
\text {Government Purchases } &\$15 \
\text {Consumption } &90\
\text { Gross Investment } &20\
\text { Consumption of Fixed Capital} &5\
\text { Exports} &8\
\text { Imports } &12\
\end{array}$
Refer to the data.NDP (net domestic product)is:

Question

Answer the question on the basis of the following data.All figures are in billions of dollars: $\begin{array}{llcc}
  \text {Government Purchases  } &\$15  \
 \text {Consumption  } &90\
 \text { Gross Investment } &20\
 \text {  Consumption of Fixed Capital} &5\
 \text {  Exports} &8\
 \text { Imports } &12\
\end{array}$
  Refer to the data.NDP (net domestic product)is:

Quizplus · Accepted Answer

NDP is calculated as GDP minus the consumption of fixed capital (depreciation). GDP = Government Purchases + Consumption + Gross Investment + (Exports - Imports) = 15 + 90 + 20 + (8 - 12) = 121. NDP = GDP - Consumption of Fixed Capital = 121 - 5 = 116.

Answer the Question on the Basis of the Following Data