Given data (in million N):

Here are the calculations for the given problems. 1. National Income Aggregates for Nigeria in 1984 Given data (in million N): Consumption expenditure (C) = 50 Government expenditure (G) = 27.50 Investment expenditure (I) = 20.75 Exports (X) = 22.50 Imports (M) = 21.75 Taxes (T) = 9.00 Capital consumption (depreciation) (D) = 16.20 General subsidy (S) = 0.75 Net factor income from abroad (NFIA) = 20.25 Total Population = 100 million people a. GDP at market prices and factor cost Step 1: Calculate GDP at Market Prices (GDP_MP). GDP_MP = C + G + I + (X - M) GDP_MP = 50 + 27.50 + 20.75 + (22.50 - 21.75) GDP_MP = 50 + 27.50 + 20.75 + 0.75 GDP_MP = 99 million N Step 2: Calculate GDP at Factor Cost (GDP_FC). GDP_FC = GDP_MP - Taxes + Subsidies GDP_FC = 99 - 9.00 + 0.75 GDP_FC = 90.75 million N GDP at market prices: 99 million N GDP at factor cost: 90.75 million N b. GNP at market prices and factor cost Step 3: Calculate GNP at Market Prices (GNP_MP). GNP_MP = GDP_MP + NFIA GNP_MP = 99 + 20.25 GNP_MP = 119.25 million N Step 4: Calculate GNP at Factor Cost (GNP_FC). GNP_FC = GDP_FC + NFIA GNP_FC = 90.75 + 20.25 GNP_FC = 111 million N GNP at market prices: 119.25 million N GNP at factor cost: 111 million N c. NNP at market prices and factor cost Step 5: Calculate NNP at Market Prices (NNP_MP). NNP_MP = GNP_MP - Depreciation NNP_MP = 119.25 - 16.20 NNP_MP = 103.05 million N Step 6: Calculate NNP at Factor Cost (NNP_FC). NNP_FC = GNP_FC - Depreciation NNP_FC = 111 - 16.20 NNP_FC = 94.80 million N NNP at market prices: 103.05 million N NNP at factor cost: 94.80 million N d. Per capita income Step 7: Calculate Per Capita Income. Per Capita Income = NNP_FCTotal Population Per Capita Income = 94.80 million N100 million people Per Capita Income = 0.948 N per person Per capita income: 0.948 N e. State the method used. Step 8: Identify the method. The primary method used for calculating GDP is the Expenditure Method. Subsequent calculations involve adjustments for net factor income from abroad, depreciation, and net indirect taxes. Method used: Expenditure Method* --- 2. Consumption Function and Macroeconomic Aggregates Given: Consumption function: C = 500 + 0.9Y Planned Investment (I) = 600 a. If national income is N3,000, calculate Consumption and Savings. Step 1: Calculate Consumption (C). C = 500 + 0.9Y C = 500 + 0.9(3000) C = 500 + 2700 C = 3200 Step 2: Calculate Savings (S). S = Y - C S = 3000 - 3200 S = -200 Consumption: N3,200 Savings: -N200 b. If national income increases from N3,000 to N4,000 and consumption increases from N2,600 to N3,200, calculate: Step 3: Calculate Marginal Propensity to Consume (MPC). Y = 4000 - 3000 = 1000 C = 3200 - 2600 = 600 MPC = ( C)/( Y) MPC = (600)/(1000) MPC = 0.6 Step 4: Calculate Marginal Propensity to Save (MPS). MPS = 1 - MPC MPS = 1 - 0.6 MPS = 0.4 Marginal Propensity to Consume (MPC): 0.6 Marginal Propensity to Save (MPS): 0.4 c. Determine the break-even level of income. Step 5: Calculate the break-even level of income (where Y=C). Y = C Y = 500 + 0.9Y Y - 0.9Y = 500 0.1Y = 500 Y = (500)/(0.1) Y = 5000 Break-even level of income: N5,000 d. Determine the equilibrium level of national income in the economy. Step 6: Calculate the equilibrium level of national income (where Y = C + I). Y = C + I Y = (500 + 0.9Y) + 600 Y = 1100 + 0.9Y Y - 0.9Y = 1100 0.1Y = 1100 Y = (1100)/(0.1) Y = 11000 Equilibrium level of national income: N11,000 Send me the next one 📸