Macro Economics Question... please help?

Question

Answer the next question(s) on the basis of the following national income data. All figures are in billions of dollars.

personal taxes - $23

net private domestic investment - $33

net exports - $6

national income - $278

u.s exports - $20

gross private domestic investment - $56

disposable income - $220

taxes on production and imports - $32

undistributed corporate profits - $15

proprietors income - $45

net foreign factor income - $0

statistical discrepancy - $0

Refer to the above data. The gross domestic product is:

A. $328.

B. $402.

C. $382.

D. $333.

the answer is D. $333 ... why though? I know you have to add the national income with net foreign factor, statistical discrepancy and consumption of fixed capital to get the GDP but how do i know what would fall under the consumption of fixed capital category??

need this ASAP.. thank u!!

Answer 1

I am not sure how exactly you will solve this question? But you want to know what is amount of consumption of fixed capita. Since no indformation is given by Govet. consumption of fixed capital, we will assume that capital consumption is only by private sector. Since Gross Private Investment is $56billion and the net private investment is $33billion, fixed capital consumption (depreciation) is $23billion. You can add back this to National Income to get closer to GDP. Net fpreogn factor and statistical discrepancy does not matter here as these are given as equal to 0. So how do you go to GDP of $333b?. Adding indirect taxes of $32b.?