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Computation of National Income

Complete the Data Exercise #1 which involves calculating GDP using the Expenditures Approach and obtaining data from the Bureau of Economic Analysis website.

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Added on  2023-01-10

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This document provides a detailed analysis of the computation of national income using the expenditures and income approach. It includes data exercises and explanations of GDP, GNP, and GDP per capita. The significance of GDP in analyzing economic performance is also discussed.

Computation of National Income

Complete the Data Exercise #1 which involves calculating GDP using the Expenditures Approach and obtaining data from the Bureau of Economic Analysis website.

   Added on 2023-01-10

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Running Head: NATIONAL INCOME 1
Computation of National Income
Students Name
University Affiliation
Computation of National Income_1
NATIONAL INCOME 2
Computation of National Income
Data Exercise 1:
Part 1: Expenditures Approach to Calculating GDP
2018:4Q
Gross Domestic Product $20,865.1
Personal Consumption Expenditures $14,188.4
Gross Private Domestic Investment $3,766.3
Net Exports of Goods & Services $-658.9
Government Consumption Expenditures and
Gross Investment
$3,569.4
2018:3Q
Gross Domestic Product $ 20,658.2
Personal Consumption Expenditures $ 14,050.5
Gross Private Domestic Investment $ 3,710.7
Net Exports of Goods & Services $ -653.5
Government Consumption Expenditures and
Gross Investment
$ 3,550.5
b. GDP.
Using Nominal GDP:
The nominal GDP for the last quarter 0f 2018 was $20,865.1
[Personal consumption expenditures / Nominal GDP] *100%
14188.4
20865.1 × 100 =68%
[Gross private domestic investment / Nominal GDP] *100%
3,766.3
20,8 65. 1 × 100 %=18.05%
[Net exports of goods and services / Nominal GDP] *100%
Computation of National Income_2
NATIONAL INCOME 3
−658.9
20 ,865.1 ×100 %= 3.16%
Government consumption expenditures and gross investment/ Nominal GDP] *100%
3,569.4
20,8 65.1 ×100 %=¿17.12%
Moreover, using Real GDP:
The real GDP for the last quarter of 2018 was 18,765.3
[Personal consumption expenditures / Real GDP] *100%
13,032.3
18,765.3 ×100 %=69.45%
[Gross private domestic investment / Real] *100%
3,467.3
18,765.3 ×100 %=18.47%
[Net exports of goods and services / Real GDP] *100%
−955.7
18,765.3 ×100 %=-5.09%
[Government consumption expenditures and gross investment/ Real GDP] *100%
3,188.7
18,765.3 ×100 %=16.99%
Computation of National Income_3
NATIONAL INCOME 4
The tables
Component Amount Proportion of nominal GDP
GDP=20,865.1
Personal Consumption
Expenditure
14188.4 68.0%
Gross Private Domestic
Investment
3,766.3 18.05%
Net Exports of Goods and
Services
-658.9 -3.16%
Government Consumption
Expenditures and Gross
Investment
3,569.4 17.12%
Component Amount Proportion of Real
GDP=18,765.3
Personal Consumption
Expenditures
13,044.2 69.45%
Gross Private Domestic
Investment
3,474.7 18.47%
Net Exports of Goods and
Services
-963.2 -5.09%
Government Consumption
Expenditure
3,195.3 16.99%
Computation of National Income_4

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