Exhibit 3

Household consumption expenditures $1149.5

Government purchases of goods and services 425.3

Gross private domestic investment 400.3

Proprietors income 400.0

Compensation of employees 800.0

Corporate profits 280

Corporate income taxes 77.7

Rental income 145.0

Capital consumption allowances(depreciation) 303.8

Indirect business taxes 213.3

Net interest 23.0

Exports 410.9

Imports 500

Undistributed corporate profits 91.0

Transfer payments 405.6

Personal taxes 340.0

Social Security taxes(Social insurance taxes) 216.5

Statistical Discrepancy 4.4

Using Exhibit 3

11. Add up the GDP using the expenditure method. Show your work.

12. What is Net domestic Product? Assume GDP=GNP. Show your work.

13. What is National Income? Assume business transfer taxes and subsidies less surplus of government firms equals zero. Show your work.

14. If personal income is $3000, what is disposable personal income? Show work.

15. What is the trade balance? Show your work.

16. What percentage is the trade balance of the GDP?

17. Compare gross private domestic investment to corporate profits. Where does the rest of the investment money come from? It may not be in the figures given above. Think about it.

18. Compare Social Security taxes to transfer payments. Is that realistic?

19. Compare Gross private domestic investment to capital consumption allowance. What is the percentage? Is that reasonable?