MEASURING A NATION’S INCOME

TASK 1.
Having given the main GDP components in the undermentioned table, accomplish further
instructions:
Specification Value Specification Value
(in mln PLN) (in mln PLN)
Consumption 2500 Net interest on public debt 90
Investment 900 Exports 160
Government purchases 700 Wages 100
Total taxes 1500 Corporate profits 550
Imports 180 Government tranfers to 450
individuals
Rental income 240 Subsidies on production 150
Value added taxes 800 Depreciation 100
Factor Payments from 220 Mandatory non-tax 60
Abroad payments (fines, tickets)
Factor Payments to Abroad 300
Notice: The net interest on public debt is included to disposable income, but is not the production factors income.

Compute:
a) net exports (is it surplus or deficit?),
b) gross domestic product at market prices,
c) gross domestic product at producer prices,
d) net domestic product at market prices,
e) net domestic product at producer prices,
f) gross national product at market prices,
g) gross national product at producer prices,
h) net national product at market prices,
i) net national product at producer prices,
j) disposable income,
k) the amount of private saving,
l) the amount of net investment.

Source: Baszyński, A., Jarmołowicz, W. (ed.), 2010, The Elements of Macroeconomics, Poznan
University of Economics Publishing House, Poznan, p. 60
TRANSLATION: BAHA KALINOWSKA-SUFINOWICZ
 MEASURING A NATION’S INCOME

TASK 2.
Having given the GDP components in the lower table, accomplish further instructions:
Specification Value Specification Value
(in mln PLN) (in mln PLN)
Gross output 8310 Net interest 155
Intermediate consumption 4880 Value added tax 800
Compensations for 1350 Subsidies on production 150
employees
Proprietors’ income 870 Factor income from abroad 220
Corporate profits 570 Factor income to abroad 300
Rental income 305

Compute:
a) gross value added (GDP at producer prices),
b) gross domestic product at market prices,
c) the sum of gross primary income (otherwise: national income),
d) gross national product at market prices.
Consider, if data from task 1 and 9 fulfill the conditions of general coherency.

TASK 3.

Compute and complete data in the table. Then interpret obtained results.

Wyszczególnienie Years

2010 2015 2020 2023

GDP PP 135 407 1400

GDP deflator 37 100

Real GDP PP 1230 1250

Population 24 25 25

Real GDP per capita 37,5 49,2

Source: Baszyński, A., Jarmołowicz, W. (ed.), 2010, The Elements of Macroeconomics, Poznan
University of Economics Publishing House, Poznan, p. 61
TRANSLATION: BAHA KALINOWSKA-SUFINOWICZ
 MEASURING A NATION’S INCOME

TASK 4.
a) Complete the table below.

b) What is the largest expenditure component of GDP?

c) Does investment include the purchase of company shares and bonds? Why?
d) Do government purchases include government spending on unemployment benefit?
Why?
e) What does it mean to say that net exports are negative?

TASK 5.
Suppose the base year in the following table is 2004.

a) What is nominal GDP for 2004, 2005, and 2006?

b) What is real GDP for 2004, 2005, and 2006?

Source: Hakes, D., Harrison, B., Vymyatrnina, Y. (2006). Workout and Study Guide to Economics by
Mankiw & Taylor, 2006, p. 258-259