ASSIGNMENT:

A. Compute GNP for the period using the income and the expenditure approaches.

Income Approach

Income, Interest, Dividend, Wages 38,438

Government Income 264
Corporate Income 800
National Income 39,502
Less: Subsidies -
Depreciation 5,143
Gross National Product 49,240

Expenditure Approach

Personal Consumption Expenditure 36,310

Investment Expenditure 10,514
Government Consumption Expenditure 3,239
Net Exports (133)
Statistical Discrepancy 0
Gross Domestic Product (GDP) 49,930
Net Factor Income (690)
Gross National Product 49,240

B. Compute per capita GNP for a population of 25 million

Given:
Gross National Product (GNP) = 49,240
Population = 25,000,000
Solution:

Per capita GNP = GNP/ Population

Per capita GNP= 49,240/ 25,000,000
Per capita GNP= 0.0019696 or .19696%