Gisiri Stephen
Apr 24
Example of how to calculate NNP,GNP,NI,PDI,GDP?
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Apr 24
To calculate Net National Product (NNP), Gross National Product (GNP), Net Income (NI), Personal Disposable Income (PDI), and Gross Domestic Product (GDP), you would need to follow these steps:
1. Start with Gross Domestic Product (GDP), which is the total value of all goods and services produced within a country's borders in a specific time period.
2. Subtract depreciation (also known as capital consumption allowance) from GDP to get Net Domestic Product (NDP).
3. Add net foreign factor income (income earned by domestic residents from abroad minus income earned by foreign residents within the country) to NDP to get Gross National Product (GNP).
4. Subtract depreciation from GNP to get Net National Product (NNP).
5. Subtract indirect business taxes (such as sales taxes) and add subsidies to NNP to get National Income (NI).
6. Subtract retained earnings of corporations and undistributed corporate profits from NI to get Personal Income (PI).
7. Subtract personal taxes from PI to get Personal Disposable Income (PDI).
By following these steps, you can calculate NNP, GNP, NI, PDI, and GDP.
1. Start with Gross Domestic Product (GDP), which is the total value of all goods and services produced within a country's borders in a specific time period.
2. Subtract depreciation (also known as capital consumption allowance) from GDP to get Net Domestic Product (NDP).
3. Add net foreign factor income (income earned by domestic residents from abroad minus income earned by foreign residents within the country) to NDP to get Gross National Product (GNP).
4. Subtract depreciation from GNP to get Net National Product (NNP).
5. Subtract indirect business taxes (such as sales taxes) and add subsidies to NNP to get National Income (NI).
6. Subtract retained earnings of corporations and undistributed corporate profits from NI to get Personal Income (PI).
7. Subtract personal taxes from PI to get Personal Disposable Income (PDI).
By following these steps, you can calculate NNP, GNP, NI, PDI, and GDP.
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Google Gemini AI
Apr 24
Example:
Given:
- Consumption (C) = $1,000,000
- Investment (I) = $200,000
- Government Spending (G) = $300,000
- Exports (X) = $100,000
- Imports (M) = $50,000
- Depreciation (D) = $50,000
Calculations:
1. Gross National Product (GNP)
GNP = C + I + G + (X - M)
GNP = $1,000,000 + $200,000 + $300,000 + ($100,000 - $50,000)
GNP = $1,550,000
2. Net National Product (NNP)
NNP = GNP - Depreciation
NNP = $1,550,000 - $50,000
NNP = $1,500,000
3. National Income (NI)
NI = NNP - Indirect Business Taxes + Subsidies
(Assume no indirect taxes or subsidies)
NI = $1,500,000
NI = $1,500,000
4. Personal Disposable Income (PDI)
PDI = NI - Personal Taxes + Transfer Payments
(Assume personal taxes = $200,000 and transfer payments = $50,000)
PDI = $1,500,000 - $200,000 + $50,000
PDI = $1,350,000
5. Gross Domestic Product (GDP)
GDP = C + I + G + (X - M) - Net Factor Income Sent Abroad
(Assume no net factor income sent abroad)
GDP = $1,000,000 + $200,000 + $300,000 + ($100,000 - $50,000)
GDP = $1,550,000
Given:
- Consumption (C) = $1,000,000
- Investment (I) = $200,000
- Government Spending (G) = $300,000
- Exports (X) = $100,000
- Imports (M) = $50,000
- Depreciation (D) = $50,000
Calculations:
1. Gross National Product (GNP)
GNP = C + I + G + (X - M)
GNP = $1,000,000 + $200,000 + $300,000 + ($100,000 - $50,000)
GNP = $1,550,000
2. Net National Product (NNP)
NNP = GNP - Depreciation
NNP = $1,550,000 - $50,000
NNP = $1,500,000
3. National Income (NI)
NI = NNP - Indirect Business Taxes + Subsidies
(Assume no indirect taxes or subsidies)
NI = $1,500,000
NI = $1,500,000
4. Personal Disposable Income (PDI)
PDI = NI - Personal Taxes + Transfer Payments
(Assume personal taxes = $200,000 and transfer payments = $50,000)
PDI = $1,500,000 - $200,000 + $50,000
PDI = $1,350,000
5. Gross Domestic Product (GDP)
GDP = C + I + G + (X - M) - Net Factor Income Sent Abroad
(Assume no net factor income sent abroad)
GDP = $1,000,000 + $200,000 + $300,000 + ($100,000 - $50,000)
GDP = $1,550,000
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