Question
National Income Accounting (15 points) Prosperity is an economy with a total GDP of 200,000 Props (Props is the currency of Prosperity). It received 40,000
National Income Accounting (15 points) Prosperity is an economy with a total GDP of 200,000 Props (Props is the currency of Prosperity). It received 40,000 Props from abroad in remittances, and paid 70,000 Props as remittances to the rest of the world. Depreciation rate is 10 %. Prosperians pay personal taxes at a flat rate of 20%, while the government transfers to the people amount to 50,000 Props. Calculate the following; (a) Gross National Product. (b) National Income. (c) Personal Income. (d) Personal Disposable Income. (e) Tax Revenue. (f) Net Factor Income from Abroad.
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