Suppose Country A has a NNP of $460
 billion. Income receipts from the rest of the world are $25
 billion, income payments to the rest of the world are $18
 billion, and depreciation is $55
 billion. What is the dollar value of consumption expenditure if it accounts for 64%
 of GDP? Throughout your calculations, round to one decimal place if necessary.

To find the dollar value of consumption expenditure, we need to follow these steps:

### 1. Calculate the Gross National Product (GNP):
The formula for GNP is:
\[
\text{GNP} = \text{NNP} + \text{Depreciation}
\]
Substituting the values given:
\[
\text{GNP} = 460 + 55 = 515 \text{ billion dollars}
\]

### 2. Calculate the Gross Domestic Product (GDP):
GNP is related to GDP through the following formula:
\[
\text{GNP} = \text{GDP} + \text{Net Income from Abroad}
\]
Where Net Income from Abroad is:
\[
\text{Net Income from Abroad} = \text{Income Receipts from the Rest of the World} - \text{Income Payments to the Rest of the World}
\]
Substituting the values given:
\[
\text{Net Income from Abroad} = 25 - 18 = 7 \text{ billion dollars}
\]
So,
\[
\text{GDP} = \text{GNP} - \text{Net Income from Abroad} = 515 - 7 = 508 \text{ billion dollars}
\]

### 3. Calculate the Consumption Expenditure:
Consumption expenditure accounts for 64% of GDP, so:
\[
\text{Consumption Expenditure} = 0.64 \times \text{GDP} = 0.64 \times 508 = 325.1 \text{ billion dollars}
\]

### Final Answer:
The dollar value of consumption expenditure is **$325.1 billion**.

Would you like more details or have any questions about this solution? Here are some related questions to consider:

1. How is Net National Product (NNP) different from Gross National Product (GNP)?
2. What is the significance of depreciation in calculating economic indicators?
3. How does Net Income from Abroad affect the calculation of GDP?
4. Why might a country's consumption expenditure be a large proportion of its GDP?
5. What are other components of GDP besides consumption expenditure?

**Tip:** Always double-check your calculations, especially when working with large figures, to ensure accuracy.

Suppose Country A has a NNP of $460 billion. Income receipts from the rest of the world are $25 billion, income payments to the rest of the world are $18 billion, and depreciation is $55 billion. What is the dollar value of consumption expenditure if it accounts for 64% of GDP? Throughout your calculations, round to one decimal place if necessary.

Learn how to calculate consumption expenditure as 64% of GDP using GNP, NNP, and depreciation figures for Country A. The problem walks through national income accounting concepts and formulas step by step. Suitable for undergraduate economics students.

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