Question
(b) A hypothetical closed economy's finance ministry compiled the following National income accounts: ITEM VALUE (Shs.) Compensation of employees 300,000 Corporate profits 27,000 Rental Income
(b) A hypothetical closed economy's finance ministry compiled the following National income accounts:
ITEM VALUE (Shs.) Compensation of employees 300,000 Corporate profits 27,000 Rental Income of Persons 9,000 Business interest payment 28,000 Indirect Business taxes 30,000 Capital consumption allowance 42,000 Personal consumption expenditure 230,500 Interest paid by consumers 10,000 Proprietor's Income 14,000 Corporate dividends 5,700 Social security contributions 27,000 Personal Taxes 38,000 Interest paid by government 19,500 Government and Business transfers 50,000 Determine: i) National Income (3 marks) ii) NNP (2 mark) iii) GNP (2 mark) iv) Personal Income (3 marks) v) Disposable Personal Income (2 mark) vi) Personal Saving (3 marks)
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