The following national income data are in billions of dollars.
Disposable income $200
Net private domestic investment 40
U. S. imports 15
National income 300
Personal taxes 31
Net exports 9
Gross private domestic investment 55
Net foreign factor income 10
Statistical discrepancy 0
This nation’s GDP is
$315 billion.

$324 billion.

$305 billion.

$367 billion.

Option C ($305 million) is the correct answer.

Explanation:

GDP = GNP - Net foreign factor income

GNP can be calculated by using the following formula

GNP (FC) = NNP (FC) + depreciation

NNP (FC) = 300, thus the depreciation is as follows:

Depreciation = Gross private domestic investment - Net private domestic investment

= 55 minus 40 = 15

Now, we can calculate GNP (FC) by substituing the values into the formula

GNP (FC) = 300 plus 15 = 315

Now, we can calculate GDP by by substituing the values into the formula.

GDP = 315 minus 10 = 305

Thus, the value of U.S. GDP is $305 billion

Therefore, the correct answer is option C

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what

explanation: