Question
Consumption $5000 (in billion) Gross Investment 1000 Indirect business taxes 300 Retained earning 244 Corporate taxes 100 Social securities taxes 800 Government purchases 1500 Export
Consumption $5000 (in billion)
Gross Investment 1000
Indirect business taxes 300
Retained earning 244
Corporate taxes 100
Social securities taxes 800
Government purchases 1500
Export 500
Transfer payments 1000
Net interest 500
Net foreign factor income 4
Capital consumption allowance 800
Import 100
Personal income tax 200
Calculate GDP from the above figures:
GDP = Consumption + Gross Investment + Government Purchases + (Exports - Imports) Plugging in the values from the above list, we get:
GDP = 5000 + 1000 + 1500 + (500 - 100) GDP = 5000 + 1000 + 1500 + 400
GDP = 7900 billion
Calculate net investment from the above figures:
Net Investment = Gross Investment - Capital consumption allowance (Depreciation)
Net Investment = $1000 - $800
Net Investment =$200 billion
Calculate net domestic product (NDP) from the above figures:
NDP = GDP - Capital Consumption Allowance
Plugging in the values from the above list, we get:
NDP= 8400 - 800 NDP = 7600 billion
Calculate national income from the above figures:
National Income = GDP - Capital Consumption Allowance - Net Foreign Factor Income
Plugging in the values from the above list, we get:
National Income = 8400 - 800 - 4
National Income = 7596 billion
Calculate personal income from the above figures
Personal Income = National Income - Corporate Taxes - Social Security Taxes - Transfer Payments
Plugging in the values from the above list, we get:
Personal Income = 7596 - 100 - 800 - 1000
Personal Income = 6696 billion
Calculate disposable income from the above figures
Disposable Income = Personal Income - Personal Income Tax
Plugging in the values from the above list, we get:
Disposable Income = 6696 - 200
Disposable Income = 6496 billion
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