Level of gross national product and domestic income level

Question

Answer the relevant questions about an economy with the following information.

a. Gross Domestic Product = 8,000

b. Net External Factor Revenues = 500

c. Gross Investments = 1,400

D. Net Investments = 1,150

to. Net Indirect Taxes = 1,200

I. What is the level of Gross National Product?

ii. What is the Domestic Income level?

Answer 1

Hi Farak,

Gross National Product

1. GNP = GDP + Net External Factor Revenues
2. GNP = 8000 + 500 = 8500

Domestic Income Level

1. = GDP + Net Investments + Net Taxes =
2. = 8000 + 1150 + 1200 = 10350