Question
Consider the following national income accounting data for an economy in a year. All figures are in billions of dollar. $ billion Personal consumption expenditures
Consider the following national income accounting data for an economy in a year. All figures are in billions of dollar.
$ billion
Personal consumption expenditures 254
Net foreign factor income 4
Transfer payments 12
Rents 14
Consumption of fixed capital (Depreciation) 25
Statistical discrepancy 2
Social Security contributions 20
Interest 24
Proprietors' income 35
Net Exports 11
Dividends 15
Compensation of employees 225
Taxes on production and imports 18
Undistributed corporate profits 21
Personal taxes 26
Corporate income taxes 20
Government purchases 72
Corporate profits 56
Net private domestic investment 33
Imports 15
Use the above data and clearly show your steps to calculate:
Gross Domestic Product (GDP) by both the expenditures and the income approaches.
Net Domestic Product (NDP) and National Income (NI) by making the required adjustments to NDP.
Personal Income (PI) and Disposable Personal Income (DPI).
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started