Given the following hypothetical data where C = $3,000;I = $1,200;G = $2,000;X − M = −$500;depreciation = $200;transfer payments = $800,net domestic product is _____.
A)$5,500
B)$5,700
C)$6,200
D)$6,400
E)$6,900

Question

Quizplus · Accepted Answer

Net Domestic Product (NDP) is calculated by subtracting depreciation from the Gross Domestic Product (GDP). GDP is the sum of Consumption (C), Investment (I), Government Spending (G), and Net Exports (X-M). Here, 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 =