<p>After you get 265 you should take out -10 from Net Foreign Factor Income. This is in there implicity through disposable income etc, but was not produced in the country. Since you want domestic production you must take that out.</p>

CC BY-SA 3.0
2015-09-09T09:17:34.100Z
2015-09-09T09:17:34.100Z
BB King
<p>This should be fairly simple but I think I am missing something here.</p>

<ul>
<li>Gross Investments:    46  </li>
<li>Exports:  9   </li>
<li>Disposable</li>
<li>Income:  190 </li>
<li>Personal Savings: 10  </li>
<li>Purchases:    84  </li>
<li>Net Foreign Factor Income:    10  </li>
<li>Consumption of Fixed Capital: 52  </li>
<li>Dividends:  13  </li>
<li>Imports of the U.S.:  12  </li>
<li>Taxes on Production and Imports:  22  </li>
<li>Personal Taxes:   38  </li>
<li>SS   Contributions:   23  </li>
<li>Statistical Discrepancy:  0   </li>
</ul>

<h3>What is the net domestic product?</h3>

<p>I am calculating 265 but being told it is 255. Am I suppose to subtract savings afterwards? </p>

<p>This is how I am calculating it: </p>

<p><em>Investments + Purchases + Disposable Income + Exports - Imports - Depreciation(Consumption of Fixed Capital)</em></p>

<p>46 + 84 + 190 + 9-12 - 52 = 265 then apply - 10 from Personal Savings?</p>

CC BY-SA 3.0
2015-09-05T11:57:14.090Z
Is it Personal Savings or change in personal savings?
Giskard
<macroeconomics><gdp>
Calculating the Net Domestic Product
Infinite8Self
# Calculating the Net Domestic Product

(Asked by: username_0 on 2015-09-04)

This should be fairly simple but I think I am missing something here.

* Gross Investments: 46
* Exports: 9
* Disposable
* Income: 190
* Personal Savings: 10
* Purchases: 84
* Net Foreign Factor Income: 10
* Consumption of Fixed Capital: 52
* Dividends: 13
* Imports of the U.S.: 12
* Taxes on Production and Imports: 22
* Personal Taxes: 38
* SS Contributions: 23
* Statistical Discrepancy: 0

### What is the net domestic product?

I am calculating 265 but being told it is 255. Am I suppose to subtract savings afterwards?

This is how I am calculating it:

*Investments + Purchases + Disposable Income + Exports - Imports - Depreciation(Consumption of Fixed Capital)*

46 + 84 + 190 + 9-12 - 52 = 265 then apply - 10 from Personal Savings?

**Tags:** macroeconomics, gdp
> **Comments:**
> **username_1**: Is it Personal Savings or change in personal savings?  

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## 1 answers

### Answer by username_2 on 2015-09-09. Score: 2

After you get 265 you should take out -10 from Net Foreign Factor Income. This is in there implicity through disposable income etc, but was not produced in the country. Since you want domestic production you must take that out.


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