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What is the income-based estimate of the economy's gross domestic product using the data in the table in the link below? http://postimage.org/image/uxa0gr3cf/  Question 2.

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The income based estimate for GDP is calculated by adding together the following things:

  • Employee compensation
  • Rent
  • Interest
  • Proprietors’ incomes
  • Corporate profits
  • Indirect business taxes
  • Depreciation
  • Net foreign factor income

In the table, we can see that employee compensation is (all figures in billions of C$) 76, rent and proprietors’ incomes are 29, interest income is 17, corporate profits are 38, indirect taxes are 25.  We are not given a figure for net foreign factor income.  We can calculate depreciation by taking gross investment – net investment.  That gives us a figure of 9. 

We must now add all of these figures.  76+29+17+38+25+9 = 194.

Therefore, our estimate for GDP using the income approach is C$194 billion.

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