Question

The national accounts of Parchment Paradise are kept on​ (you guessed​ it) parchment.

A fire in the statistics office destroys some​ accounts, leaving only the data on the right.

Calculate net domestic product at factor​ cost, the statistical ​discrepancy, and GNP.

Net domestic product at factor cost is ​$6230.

****Statistical discrepancy is ​$_____.**** FIND STATISTICAL DISCREPENCY

Item	​(dollars)
GDP​ (income approach)	7,050
Consumption expenditure	7,300
Indirect taxes less subsidies	700
​Interest, rent, and profit	230
Investment	160
Government expenditure	190
Wages	6,000
Net factor income from abroad	100
Net exports	−400

FIND STATISTICAL DISCREPENCY please

Answer 1

Solution:-

Net domestic product at factor cost = Wages + Interest, rent and profit + Mixed income

                                                            = 6,000 + 230

                                                           = 6,230

GDP Expenditure Approach:-

GDP = Consumption + Investment + Government expenditure + Net exports

GDP = $7300 + $160 + $190 + (-400)

GDP = 7250

GDP (expenditure approach) is $7250.

GDP from income approach = 7050

Statistical discrepancy = GDP from expenditure approach - GDP from income approach

= $7250 - $7050

= $200

GNP = GDP (Expenditure approach) + NFIA

GDP = $7250

NFIA=100

GNP = 7250 + 100

         = 7350