ECON
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Measures the amount of capital invested by domestic

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measures the amount of capital invested by domestic businesses for their local production (Case, Fair & Oster, 2017). It measures specific factors in an economy instead of giving the overall health of an economy. Net export of goods and services is given by the volume of exports of a certain country less its imports. It is negative when the imports of a country are greater than the exports. The budget allocated to national defense for the last quarter was 783.6 billions of dollars. The amount allocated to national defense when computed as a ratio of government consumption expenditures and gross investment was (783.6/3552.3)* 100% = 22.06%. Likewise, the percentage of the national defense over GDP was (783.6/ 20659.0)* 100 = 3.79%. The data above shows how the economy has grown over the last quarter. Similarly, it can be noted that the economy of the country has been growing steadily, concerning the real and nominal GDP. Part 2: Income Approach to Calculating GDP
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DATA EXERCISE 1 4 The table below shows the GDP information for the past four quarters 2017 2018 Q4 Q1 Q2 QI GDP 19,831.8 16,535.3 20,411.9 20,659.0 GNP 20,102.6 20,309.8 20,678.9 ............... NI 17,015.3 17,266.2 17,461.5 ............... PI 17,103.1 17,319.2 17,499.8 17,680.2 Analysis 1. GDP measures the value of all goods that have been produced within a country over a specified period. Conversely, GNP refers to the value of all products that have been manufactured by citizens of a particular country regardless of their location. Therefore, GDP is the market value of goods and services that have been produced in a country excluding those that have been produced from abroad for a specific period, usually one year (O’Neill, 2014). The GNP comprises all products and services that nonresident nationals have produced; it excludes the value of all goods and services that have been produced by citizens who reside in other countries 2. To calculate the GNP from GDP, the net factor payments from abroad are subtracted from the gross domestic product. In this case, the income earned by nonresidents is added in the computation of this value; furthermore, the revenue generated by foreign citizens residing in the country is subtracted.
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  • Spring '16
  • gross domestic product, Measures of national income and output

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