Bureau of Economic Analysis in the USA is responsible for construction and maintenance of national income and product accounts (NIPA). Measurement began in the 1930s due to frustration of Roosevelt and Hoover trying to design policies to combat the Great Depression. Simon Kuznets (Nobel laureate) was commissioned to develop initial methodology and estimates. In 1947, the process became much more consistent. Methodologies have frequently been changed (improved?) as a result of advances in economics, accounting, and data collection. Past data are then revised to reflect new definitions. On the following information, calculate GNP at factor cost. Whether GNPFC derive from income method equivalent to expenditure method? S.No. Items Rs. (In Crores) 1 Private final consumption expenditure 1000 2 Net domestic capital formation (Investment) 200 3 Profit 400 4 Compensation of employers (Wages and salaries) 800 5 Rent 250 6 Government final consumption expenditure 500 7 Consumption of fixed capital (Depreciation) 60 8 Interest 150 9 Net factor income from abroad (-10) 10 Net exports (-20) 11 Net indirect taxes 80
Bureau of Economic Analysis in the USA is responsible for construction and maintenance of national income and product accounts (NIPA). Measurement began in the 1930s due to frustration of Roosevelt and Hoover trying to design policies to combat the Great Depression. Simon Kuznets (Nobel laureate) was commissioned to develop initial methodology and estimates. In 1947, the process became much more consistent. Methodologies have frequently been changed (improved?) as a result of advances in economics, accounting, and data collection. Past data are then revised to reflect new definitions. On the following information, calculate GNP at factor cost. Whether GNPFC derive from income method equivalent to expenditure method? S.No. Items Rs. (In Crores) 1 Private final consumption expenditure 1000 2 Net domestic capital formation (Investment) 200 3 Profit 400 4 Compensation of employers (Wages and salaries) 800 5 Rent 250 6 Government final consumption expenditure 500 7 Consumption of fixed capital (Depreciation) 60 8 Interest 150 9 Net factor income from abroad (-10) 10 Net exports (-20) 11 Net indirect taxes 80
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter4A: Problems In Applying The Linear Regression Model
Section: Chapter Questions
Problem 2E
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Bureau of Economic Analysis in the USA is responsible for construction and maintenance
of national income and product accounts (NIPA). Measurement began in the 1930s due to
frustration of Roosevelt and Hoover trying to design policies to combat the Great
Depression. Simon Kuznets (Nobel laureate) was commissioned to develop initial
methodology and estimates. In 1947, the process became much more consistent.
Methodologies have frequently been changed (improved?) as a result of advances in
economics, accounting, and data collection. Past data are then revised to reflect new
definitions.
On the following information, calculate GNP at factor cost. Whether GNPFC derive from
income method equivalent to expenditure method? S.No. Items Rs. (In Crores)
1 Private final consumption expenditure 1000
2 Net domestic capital formation
(Investment)
200
3 Profit 400
4 Compensation of employers (Wages and
salaries)
800
5 Rent 250
6 Government final consumption
expenditure
500
7 Consumption of fixed capital
(Depreciation )
60
8 Interest 150
9 Net factor income from abroad (-10)
10 Net exports (-20)
11 Net indirect taxes 80
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