Using hypothetical numbers, calculate the national income (NI) starting with a gross domestic product (GDP) of $50 million.
What will be an ideal response?
Hypothetical numbers will vary, but should be proportionally realistic. For example,
$2 million (the net income of foreigners) is subtracted from $50 million (GDP). The result
is a gross national product (GNP) of $48 million. $3 million (depreciation) is subtracted
from the GNP of $48 million. The result is a net national product (NNP) of $45 million.
Then $4 million (indirect business tax) is subtracted from $45 million (NNP). The result
is a national income (NI) of $41 million.
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