Gnp Calculation.docx

Gross National Product GNP = WIRP + IBT + D GNP = C+ I + G + (X-M) 1. Calculate the Gross National Product (in billion pesos) given the following figures 2. Compare the GNP at current prices for 2014 with 2015 given the inflation rate of 7% with 2013 as the base year. Account Names Compensation of government employees Indirect business taxes Compensation of private persons Government expenditures Consumer spending Private sector investments Exports Profits from entrepreneurship Rents of properties Imports Income of government from stocks and govt. corporations Capital consumption allowance Government investments on stocks, properties & business ANSWER: 1. GNP Calculations 2014 Income Approach GNP = WIRP+IBT+D = 580+350+250+300+190+500+80 = 2,250 BILLIONS

2014 580 500 350 700 520 450 380 300 250 50 190

2015 600 510 360 800 500 460 400 320 220 70 220

80 250

90 260

Expenditure Approach GNP = C+I+G+(X-M) = 520+250+450+700+(380-50) = 1920+330 = 2,250 BILLIONS Income Approach GNP = WIRP+IBT+D = 600+360+220+320+220+510+90 = 2,320 BILLIONS

Expenditure Approach GNP = C+I+G+(X-M) = 500+460+260+800+ (400-70) = 500+460+260+800+ (330) = 2,350 BILLIONS 2. Growth Rate Using Income Approach 2,320 billions (2015) – 2,250 billions (2014) = 70 billions 70/2250 = 0.31x100 = 3.11% (GNP growth rate) Using Expenditure Approach 2350 (2015) – 2250 (2014) = 100 100/2250 = 0.44X100 = 4.44% (GNP growth rate)

SUBMITTED BY: Cherry Lynn Roloyan