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  • Sep 15, 2015, 12:53 PM
    TanyaD
    Please help to check if I am doing this correct
    I need to figure out what the answer is show i can check my answer no examples in text book. How do i start working out the National Income.?

    Government spending R 18 000
    Depreciation R 6000
    Investment Spending R 35 000
    Net Foreign Spending R 12 000
    Indirect Taxes R 14 500
    Net factors Payment(R 4000)
    Consumer Spending R 30 000
    Subsidies R 4000

    GDP at factors cost=Remuneration +Net trade surplus +Depreciation
    4000 + 12000 + 6000 = 22000
    GDP at market prices=GDP at factors cost + Indirect taxes – Subsidies
    22000 + 14500 – 4000 = 32500
    GNP= GDP at market prices – Net factors payment
    32000 – 4000 = 28500
    National income = Net national product = GNP – Depreciation
    28500 – 6000 = 22500
  • Sep 15, 2015, 01:52 PM
    Catsmine
    Isn't depreciation supposed to be a debit (negative) value?
  • Sep 16, 2015, 10:42 AM
    pready
    Start with your revenues, then subtract your expenses to get income.

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