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The information in the table below shows the national accounts figures for South Africa between 2015 and 2016
The information in the table below shows the national accounts figures for South Africa between 2015 and 2016. Use the information to answer the questions that follow: 2015 (R millions) 1 853 657 2016 (R millions) 1 864 436 614 957 628 434 Component Final consumption expenditure by households Final consumption expenditure by general government Gross capital formation Exports of goods and services Imports of goods and services Primary income from the rest of the world Primary income to the rest of the world Consumption of fixed capital 655 457 909 345 966 025 98 016 198 382 433 604 602 458 912 546 928 730 87 773 208 243 445 724 Calculate gross domestic product (GDP) for 2015 and 2016 (4) Answer: GOP- COXZ)
2016 GDP-3095328 - 16184 =3079144 1.2 Calculate the economic growth rate between 2015 and 2016. (3) Answer: 1.3 Calculate the net exports for the year 2015 and comment on the effect of this figure on economic growth in South Africa. Answer:
Paragraph Styles 1.4 Calculate net domestic product for the year 2016. (2 Answer: 1.5 Calculate net national product for the year 2016. (2) Answer:
Expert Solution
SOLUTION
Question 1.4
Calculation of GDP, GNP and NNP for 2015
Final Consumption expediture by household = 1,853,657
Final Consumption Expenditure by Government = 614,957
Gross capital Formation = 655,457
Net exports of goods and Services
(909,345 - 966,025) = -(56,680)
Total = 3,067,391
GDP is 3,067,391
Net Income from the rest of the world
(98016 - 198382 = -1,00,366)
GNP = GDP + net national income from the rest of the world
GNP = 3,067,391 + (-100,366)
= 2,967,025
NNP (Net National Product) = GNP - Depreciation
2,967,025 - 433,604
2,533,421
SOLUTION
Question 1.5
Calculation of GDP, GNP and NNP for 2016
Final Consumption expediture by household = 1,864,436
Final Consumption Expenditure by Government = 628,434
Gross capital Formation = 602,458
Net exports of goods and Services
(912,546 - 928730) = -(16,184)
Total = 3,079,144
GDP is 3,079,144
Net Income from the rest of the world
(87,773 - 208,243 = -120,470)
Total
GNP = GDP + net national income from the rest of the world
= 3,079,144 + (-120,470)
= 2,958,674
NNP (Net National Product) = GNP - Depreciation
2,958,674 - 445,724
2,512,950
Question 1.3
Net exports for the year 2015
(909,345 - 966,025 = -56,680)
Since the figure is negetive it will adversely effect the economic growth.
Question 1.2
Calculation of Economicr groth between 2015 and 2016
[(GDP of 2016 - GDP of 2015) / GDP of 2015] *100
[(3079144 - 3067391) / 3067391] *100
= 0.38 %
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