Given the following hypothetical data: 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 as GDP minus depreciation. 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: C = $3,000; I =