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Gross National Product

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Gross National Product

Published by Brilliant Ravens

The table below represents economic transactions for country XYZ in billions
of shillings:
Total output Intermediate purchases
Agriculture 30 10
Manufacturing 70 45
Services 55 25

Required:
i) Calculate the Gross National Product of this economy using the value added
approach. (3 marks)
ii) If depreciation and indirect taxes equal 8 billion and 7 billion shillings
respectively, find the Net Domestic Product both at Market prices and at factor
cost. (4 marks)
c) Briefly explain the multiplier and accelerator principles. (3 marks)

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