Question
A This is the graph you need for the questions Table 7. Relation of Gross Domestic Product, Gross National Product, and National Income [Billions of
A
This is the graph you need for the questions
Table 7. Relation of Gross Domestic Product, Gross National Product, and National Income
[Billions of dollars]
Line | 2020 | 2021 | 2022 r | Seasonally adjusted at annual rates | Line | |||||
2021 | 2022 | |||||||||
Q4 | Q1 | Q2 | Q3 | Q4 r | ||||||
1 | Gross domestic product (GDP) | 21,060.5 23,315.1 25,462.7 | 24,349.1 24,740.5 25,248.5 25,723.9 26,138.0 | 1 | ||||||
2 | Plus: Income receipts from the rest of the world | 971.3 1,087.0 1,256.2 | 1,120.9 1,147.1 1,231.3 1,292.1 1,354.6 | 2 | ||||||
3 | Less: Income payments to the rest of the world | 774.3 913.9 1,078.8 | 939.5 958.4 1,023.3 1,130.6 1,203.1 | 3 | ||||||
4 | Equals: Gross national product | 21,257.4 23,488.2 25,640.1 | 24,530.6 24,929.2 25,456.4 25,885.4 26,289.5 | 4 | ||||||
5 | Less: Consumption of fixed capital | 3,577.8 3,831.6 4,284.7 | 3,984.9 4,113.6 4,242.1 4,358.1 4,425.1 | 5 | ||||||
6 | Less: Statistical discrepancy | -214.9 -128.9 -198.8 | -124.2 -277.0 -269.3 -243.7 -5.0 | 6 | ||||||
7 | Equals: National income | 17,894.6 19,785.5 21,554.1 | 20,669.9 21,092.6 21,483.6 21,771.0 21,869.4 | 7 | ||||||
8 | Compensation of employees | 11,592.7 12,538.5 13,600.6 | 13,044.4 13,259.7 13,415.2 13,755.0 13,972.6 | 8 | ||||||
9 | Wages and salaries | 9,457.4 10,290.1 11,223.5 | 10,748.4 10,925.5 11,058.0 11,361.0 11,549.3 | 9 | ||||||
10 | Supplements to wages and salaries | 2,135.4 2,248.4 2,377.1 | 2,296.0 2,334.2 2,357.1 2,394.0 2,423.2 | 10 | ||||||
11 | Proprietors' income with inventory valuation and capital consumption adjustments | 1,643.1 1,753.6 1,848.3 | 1,789.8 1,811.4 1,835.4 1,863.5 1,882.9 | 11 | ||||||
12 | Rental income of persons with capital consumption adjustment | 719.8 723.8 781.9 | 739.6 744.9 775.9 794.9 811.8 | 12 | ||||||
13 | Corporate profits with inventory valuation and capital consumption adjustments | 2,260.1 2,771.1 2,952.6 | 2,865.9 2,869.6 3,001.3 3,000.0 2,939.5 | 13 | ||||||
14 | Net interest and miscellaneous payments | 665.8 644.1 542.1 | 621.5 630.2 608.2 515.7 414.5 | 14 | ||||||
15 | Taxes on production and imports less subsidies | 869.0 1,181.5 1,648.7 | 1,424.3 1,604.9 1,652.0 1,670.6 1,667.5 | 15 | ||||||
16 | Business current transfer payments (net) | 144.1 171.0 183.3 | 178.8 170.1 198.7 177.7 186.7 | 16 | ||||||
17 | Current surplus of government enterprises | -0.1 2.1 -3.4 | 5.8 1.8 -3.0 -6.4 -6.1 | 17 | ||||||
18 | Addenda: Gross domestic income (GDI) | 21,275.4 23,444.0 25,661.5 | 24,473.3 25,017.5 25,517.8 25,967.6 26,143.0 | 18 | ||||||
19 | Average of GDP and GDI | 21,167.9 23,379.6 25,562.1 | 24,411.2 24,879.0 25,383.1 25,845.8 26,140.5 | 19 | ||||||
20 | Statistical discrepancy as a percentage of GDP | -1.0 -0.6 -0.8 | -0.5 -1.1 -1.1 -0.9 0.0 | 20 | ||||||
r Revised
Source: U.S. Bureau of Economic Analysis
- 18 -
March 30, 2023
Table 8. Personal Income and Its Disposition
[Billions of dollars]
Line | 2020 | 2021 | 2022 r | Seasonally adjusted at annual rates | Line | |||||
2021 | 2022 | |||||||||
Q4 | Q1 | Q2 | Q3 | Q4 r | ||||||
1 | Personal income 1 | 19,832.3 21,294.8 21,809.0 | 21,162.1 21,319.8 21,578.3 21,969.5 22,368.3 | 1 | ||||||
2 | Compensation of employees | 11,592.7 12,538.5 13,600.6 | 13,044.4 13,259.7 13,415.2 13,755.0 13,972.6 | 2 | ||||||
3 | Wages and salaries | 9,457.4 10,290.1 11,223.5 | 10,748.4 10,925.5 11,058.0 11,361.0 11,549.3 | 3 | ||||||
4 | Supplements to wages and salaries | 2,135.4 2,248.4 2,377.1 | 2,296.0 2,334.2 2,357.1 2,394.0 2,423.2 | 4 | ||||||
5 | Proprietors' income with inventory valuation and capital consumption adjustments | 1,643.1 1,753.6 1,848.3 | 1,789.8 1,811.4 1,835.4 1,863.5 1,882.9 | 5 | ||||||
6 | Farm | 45.2 51.3 91.7 | 43.9 74.4 95.7 95.9 100.9 | 6 | ||||||
7 | Nonfarm | 1,597.9 1,702.2 1,756.6 | 1,745.9 1,737.0 1,739.7 1,767.6 1,782.0 | 7 | ||||||
8 | Rental income of persons with capital consumption adjustment | 719.8 723.8 781.9 | 739.6 744.9 775.9 794.9 811.8 | 8 | ||||||
9 | Personal income receipts on assets | 3,095.4 3,202.4 3,343.9 | 3,258.5 3,269.9 3,323.0 3,358.8 3,424.0 | 9 | ||||||
10 | Personal interest income | 1,647.3 1,658.6 1,726.6 | 1,657.5 1,670.8 1,708.6 1,738.1 1,789.0 | 10 | ||||||
11 | Personal dividend income | 1,448.1 1,543.9 1,617.3 | 1,601.0 1,599.1 1,614.4 1,620.7 1,635.0 | 11 | ||||||
12 | Personal current transfer receipts | 4,231.2 4,617.3 3,910.7 | 3,925.7 3,868.7 3,883.2 3,892.8 3,998.2 | 12 | ||||||
13 | Less: Contributions for government social insurance, domestic | 1,450.0 1,540.8 1,676.5 | 1,595.8 1,634.7 1,654.4 1,695.6 1,721.1 | 13 | ||||||
14 | Less: Personal current taxes | 2,236.4 2,661.7 3,200.7 | 2,806.1 3,145.5 3,188.5 3,236.5 3,232.3 | 14 | ||||||
15 | Equals: Disposable personal income | 17,595.9 18,633.1 18,608.3 | 18,356.1 18,174.4 18,389.8 18,733.0 19,136.0 | 15 | ||||||
16 | Less: Personal outlays | 14,603.6 16,389.8 17,922.5 | 17,019.0 17,389.5 17,798.7 18,124.5 18,377.2 | 16 | ||||||
17 | Equals: Personal saving | 2,992.3 2,243.4 685.8 | 1,337.1 784.9 591.1 608.5 758.8 | 17 | ||||||
18 | Personal saving as a percentage of disposable personal income Addenda: | 17.0 12.0 3.7 | 7.3 4.3 3.2 3.2 4.0 | 18 | ||||||
19 | Personal income excluding current transfer receipts, billions of chained (2012) dollars 2 | 14,036.8 14,424.3 14,570.8 | 14,589.6 14,507.5 14,453.7 14,610.2 14,711.6 | 19 | ||||||
20 | Disposable personal income, billions of chained (2012) dollars 2 | 15,831.6 16,115.7 15,148.9 | 15,537.3 15,108.8 15,021.2 15,140.6 15,324.9 | 20 | ||||||
r Revised
- Personal income is also equal to national income less corporate profits with inventory valuation and capital consumption adjustments, taxes on production and imports less subsidies, contributions for government social insurance, net interest and miscellaneous payments, business current transfer payments (net), and current surplus of government enterprises, plus personal income receipts on assets, and personal current transfer receipts.
- The current-dollar measure is deflated by the implicit price deflator for personal consumption expenditures.Source: U.S. Bureau of Economic Analysis
Questions-
Part 2: Income Approach to Calculating GDP (weight 45% of the assignment
grade)
Complete the following exercise:
Go to http://www.bea.gov/
Visit the Bureau of Economic Analysis website at www.bea.gov. From the drop[1]down menu under "Data", click on "by Economics Account". Then click on
"National", "Gross Domestic Product, and "Full Release and Tables". Use table 7
(Relation of Gross Domestic Product, Gross National Product, and National
Income) and table 8 (Personal Income and its Disposition).
1. Create the table that contains the following information for the last
quarter where data required for this exercise is available.
Please note that using the data for previous years and/or previous
estimates will produce grade zero for this part of the project.
Omit the intermediate lines found in Tables 7 and 8 on the web site.
Gross domestic product
Gross national product
Net national product (you should calculate it as Gross national product minus
Consumption of fixed capital)
National income
Personal income
Personal Disposable Income
Personal Savings
Present the information that you received in your project.
2. Write a report in your own words (2 pages, double-spaced), which contains the
analysis of the results you received. In this report consider, but do not be limited
to the following:
1. What is the difference between gross domestic product (GDP) and gross national
product (GNP)? What is the difference in what GDP measures compared to
GNP?
2. Based on the table, what calculations must you make to determine GNP from
GDP?
3. What is national income (NI)? What does NI measure?
4. Which was higher in this year, GNP or NI? By how much?
5. What calculations must you make to determine NI from GNP?
6. NI is composed of a number of categories. What category makes up the largest
portion of NI?
7. What calculations must you make to determine Personal Income from National
Income?
8. What calculations must you make to determine Personal Disposable Income and
Personal Savings?
9. Please analyze and discuss the significance of the data that you received
for this Data exercise.
10. Reflect on what you have learned from this exercise.
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