Suppose Country A has a NNP of $450
 billion. Income receipts from the rest of the world are $25
 billion, income payments to the rest of the world are $14
 billion, and depreciation is $27
 billion. What is the dollar value of consumption expenditure if it accounts for 56%
 of GDP? Throughout your calculations, round to one decimal place if necessary.


To find the dollar value of consumption expenditure, we first need to calculate the Gross Domestic Product (GDP) of Country A. Here's how we can approach this:

### Step 1: Relationship between NNP and GDP
The relationship between Net National Product (NNP) and GDP is as follows:

\[
\text{NNP} = \text{GDP} + \text{Net Income from Abroad} - \text{Depreciation}
\]

Where:
- **NNP** is $450 billion.
- **Net income from abroad** is the difference between income receipts from the rest of the world and income payments to the rest of the world:
  
  \[
  \text{Net Income from Abroad} = 25 - 14 = 11 \, \text{billion}
  \]
- **Depreciation** is $27 billion.

### Step 2: Rearranging the formula to solve for GDP
We can rearrange the formula for GDP as:

\[
\text{GDP} = \text{NNP} + \text{Depreciation} - \text{Net Income from Abroad}
\]

Now plug in the values:

\[
\text{GDP} = 450 + 27 - 11 = 466 \, \text{billion}
\]

### Step 3: Calculating consumption expenditure
Consumption expenditure accounts for 56% of GDP. So, we calculate it as:

\[
\text{Consumption Expenditure} = 0.56 \times \text{GDP}
\]

Substitute the GDP value:

\[
\text{Consumption Expenditure} = 0.56 \times 466 = 261.0 \, \text{billion}
\]

Thus, the dollar value of consumption expenditure is **$261.0 billion**.

Would you like further details on any of these steps or explanations?

Here are 5 related questions you might consider:
1. How does GDP differ from GNP (Gross National Product)?
2. What is the significance of depreciation in calculating NNP?
3. What are some factors that can influence a country’s income receipts and payments from the rest of the world?
4. How does the consumption expenditure ratio affect economic policy?
5. What are the other components of GDP besides consumption expenditure?

**Tip:** GDP can be broken down into various components: consumption, investment, government spending, and net exports. Each plays a significant role in understanding a country's economic health.

Suppose Country A has a NNP of $450 billion. Income receipts from the rest of the world are $25 billion, income payments to the rest of the world are $14 billion, and depreciation is $27 billion. What is the dollar value of consumption expenditure if it accounts for 56% of GDP? Throughout your calculations, round to one decimal place if necessary.

Learn how to calculate the dollar value of consumption expenditure given the NNP, income receipts, income payments, and depreciation for Country A. This problem involves key economic concepts and mathematical calculations, suitable for college-level students.

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