Part 2: Income Approach to Calculating GDP (weight 45% of the assignment grade) Complete the following exercise: Go to http:iiwww.bea.gov/ Visit the Bureau of Economic Analysis website at www.bea.gov. From the drop down menu under \"Data\2. Write a report in your own words (2 pages, double-spaced), which contains the analysis of the results you received. In this report consider, but do not be limited to the following: 1. What is the difference between gross domestic product (GDP) and gross national product (GNP)? What is the difference in what GDP measures compared to GNP? 2. Based on the table, what calculations must you make to determine GNP from GDP? 3. What is national income (NI)? What does NI measure? 4. Which was higher in this year, GNP or NI? By how much? 5. What calculations must you make to determine NI from GNP? 6. NI is composed of a number of categories. What category makes up the largest portion of NI? 7. What calculations must you make to determine Personal Income from National Income? 8. What calculations must you make to determine Personal Disposable Income and Personal Savings? 9. Please analyze and discuss the significance of the data that you received for this Data exercise. 10. Reflect on what you have learned from this exercise.February 28, 2024 Table 7. Relation of Gross Domestic Product, Gross National Product, and National Income [Billions of dollars] Seasonally adjusted at annual rates Line 2021 2022 2023" 2022 2023 Line 04 Q1 Q2 Q3' 1 Gross domestic product (GDP) 23,594.0 25,744.1 27,357.8 26,408.4 26,813.6 27,063.0 27,610.1 27,944.6 2 Plus: Income receipts from the rest of the world 1,112.1 1,2526 .... 1,340.7 1,390.7 1,452.7 1,499.9 Less: Income payments to the rest of the world 9286 1,070.7 1,155.2 1,231.8 1,279.7 1,335.8 4 Equals: Gross national product 23,777.6 25,926.0 26,594.0 26,972.5 27,236.1 27,774.2 5 Less: Consumption of fixed capital 3,873.3 4,299.9 4,585.4 4,430.3 4,507.4 4,557.0 4,611.5 4,665.6 6 Less: Statistical discrepancy 5.5 -52.3 210.2 328.2 437.3 640.5 7 Equals: National income 19,909.7 21,678.4 21,953.5 22,136.9 22,241.8 22,522.2 Compensation of employees 12,545.9 13,439.2 14,254.2 13,6750 13,965.2 14,154.1 14,368.7 14,528.9 LO OO Wages and salaries 10,3126 11,116.0 11,817.0 11,317.0 11,565.4 11,733.3 11,917.5 12,051.7 10 Supplements to wages and salaries 2,233 2 2,3232 2,437.3 2,357.9 2,399.8 2,420.9 2,4512 2,477 2 10 11 Proprietors' income with inventory valuation and capital consumption adjustments 1,749.1 1,790.9 1,849.2 1,825.3 1,827.4 1,824.1 1,859.6 1,885.8 11 12 Rental income of persons with capital consumption adjustment 814.2 878.3 967.3 907.5 945.8 961.1 974.4 988.1 12 13 Corporate profits with inventory valuation and capital consumption adjustments 2,922.8 3,208.7 3,248.4 3,165.1 3,172.1 3,280.7 13 14 Net interest and miscellaneous payments 504.6 457.4 176.6 360.7 307 8 212.4 105.7 80.6 14 15 Taxes on production and imports less subsidies 1,189.2 1,682.8 1,728.7 1,711.3 1,729.7 1,721.7 1,727.6 1,735.8 15 16 Business current transfer payments (net) 189.0 216.8 214.5 227.6 203.1 206.4 216.7 231.9 16 17 Current surplus of government enterprises -5.0 4.4 .9.7 -2.3 -7.1 -10.0 -11.2 -10.4 17 Addenda: 18 Gross domestic income (GDI) 23,599.5 25,796.4 26,198 2 26,485.4 26,625.7 26,969.7 18 Average of GDP and GDI 23,596.8 25,770.3 26,303.3 26,649.5 26,844.4 27,289.9 19 20 Statistical discrepancy as a percentage of GDP 0.0 -0.2 0.8 1.2 1.6 2.3 20 r Revised. Revisions include changes to series affected by the incorporation of revised wage and salary estimates for the third quarter of 2023. Source: U.S. Bureau of Economic AnalysisTable 8. Personal Income and Its Disposition [Billions of dollars] Seasonally adjusted at annual rates Line 2021 2022 2022 2023 Line Q4 Q1 Q2 Q3 04' Personal income 21,407.7 21,840.8 22,975.7 22,274.1 22,643.9 22,868.0 23,085.7 23,305.2 Compensation of employees 12,545.9 13,439.2 14,254.2 13,675.0 13,965.2 14,154.1 14,368.7 14,528.9 2 Wages and salaries 10,312.6 11,116.0 11,817.0 11,317.0 11,565.4 11,733.3 11,917.5 12,051.7 Private industries 8,766.4 9,493.6 10,082.6 9,660.8 9,879.6 10,022.3 10,164.2 10,2643 4 Goods-producing industries 1,604.9 1,740.5 1,851.5 1,776.0 1,809.9 1,837.4 1,867.4 1,891.3 Manufacturing 961.6 1,034.8 1,091.3 1,050.4 1,067.2 1,081.8 1,102.6 1,113.8 6 Services-producing industries 7,161.4 7,753.1 8,231.1 7,884.8 8,069.7 8,184.9 8,296.7 8,373.0 Trade, transportation, and utilities 1,595.3 1,714.1 1,813.8 1,738.0 1,790.2 1,798.5 1,827.3 1,839.2 8 Other services-producing industries 5,566.2 6,039.0 6,417.3 6,146.9 6,279.5 6,386.4 6,469.4 6,533.8 9 10 Government 1,546.3 1,622.5 1,734.4 1,656.2 1,685.8 1,710.9 1,753.3 1,787.4 10 11 Supplements to wages and salaries 2,233.2 2,323.2 2,437.3 2,357.9 2,399.8 2,420.9 2,451.2 2,477 2 11 12 Employer contributions for employee pension and insurance funds 1,526.8 1,559.1 1,620.7 1,579.6 1,598.8 1,609.7 1,628.5 1,645.6 12 13 Employer contributions for government social insurance 706.4 764.0 816.6 778.3 800.9 811.2 822.7 831.6 13 14 "Proprietors' income with inventory valuation and capital consumption adjustments 1,749.1 1,790.9 1,849.2 1,825.3 1,827.4 1,824.1 1,859.6 1,885.8 14 15 Farm 72 2 81.7 54.9 84.0 71.2 58.2 49.9 40.1 15 16 Nonfarm 1,676.8 1,709.1 1,794.3 1,741.4 1,756.2 1,765.9 1,809.6 1,845.7 16 17 Rental income of persons with capital consumption adjustment 814.2 878.3 967.3 907.5 945.8 961.1 974.4 988.1 17 18 Personal income receipts on assets 3,214.7 3,432.0 3,612.9 3,525.4 3,577.0 3,602.6 3,606.5 3,665.4 18 19 Personal interest income 1,515.5 1,627.5 1,772.0 1,706.7 1,744.3 1,754.8 1,776.4 1,8124 19 20 Personal dividend income 1,699 2 1,804.5 1,840.9 1,818.7 1,832.7 1,847.8 1,830.2 1,853.0 20 21 Personal current transfer receipts 4,641.9 4,002.1 4,097.2 4,073.7 4,102.4 4,120.1 4,093.7 4,072 5 21 22 Government social benefits to persons 4,554.1 3,903.0 3,992.9 3,974.9 4,001.5 4,01 3,965.0 22 23 Social security 1,114.6 1,211.5 1,357.3 1,225.8 1,340.0 1,353.8 1,361.3 1,374.3 23 24 Medicare" 874.5 926.1 944.4 934.2 938.1 941.9 946.3 951.3 24 25 Medicaid 736.5 814.4 879.8 828.4 871.5 911.4 880.6 855.9 25 Unemployment insurance 324.0 22.3 22.0 22.1 22.0 22.3 21.0 22.7 26 Veterans' benefits 154.1 170.5 173.0 173.7 172.9 172.6 172.8 173.6 27 28 Other 1,350.5 758.2 616.4 790.7 657.1 615.4 605.7 587 2 28 29 Other current transfer receipts, from business (net) 87.7 99.1 104.3 98.8 100.9 102 8 105.9 29 30 Less: Contributions for goverment social insurance, domestic 1,558.0 1,701.7 1,805.1 1,7328 1,773.9 1,794.0 1,817.1 1,835.5 30 31 Less: Personal current taxes 2,743.3 3,138.3 2,753.8 3,095.7 2,763.7 2,703.8 2,765.3 2,782 3 31 32 Equals: Disposable personal income 18,664.4 18,702.5 20,221.9 19,178.4 19,880.2 20,164.2 20,320.4 20,522 9 32 33 Less: Personal outlays 16,543.9 18,079.7 19,309.7 18,556.0 18,932.0 19,136.6 19,456.5 19,713.8 33 34 Personal consumption expenditures 16,043.0 17,511.7 18,567.4 17,917.0 18,269.6 18,419.0 18,679.5 18,901.5 34 35 Good 5,506.6 5,997.0 6,192.4 6,047.6 6,133.8 6,144.7 6,231.8 6,2595 35 36 Durable goods 2,006.4 2,128.9 2,198.7 2,129.0 2,194.9 2,193.6 2,204.5 2,2020 36 37 Nondurable goods 3,500 2 3,868.1 3,993.7 3,918.6 3,939.0 3,951.1 4,027.3 4,057 5 37 38 Services 10,536.3 11,514.7 12,374.9 11,869.4 12,135.7 12 274.4 12,447.7 12,642.0 38 39 Personal interest payments 273.6 326.1 497.1 395.3 419.8 474.7 530.6 563.2 39 Personal current transfer payments 227.3 241.8 245.2 243.7 242.6 242.9 246.4 249.0 40 41 To government 120.2 127.7 130.8 129.2 129.7 130.4 131.2 132.1 41 42 To the rest of the world (net) 107.1 114.1 1144 114.4 112.9 112.5 115.2 116.9 42 43 Equals: Personal saving 2,120.5 622.8 912.2 622.4 948.2 1,027.6 863.9 809.2 43 14 Personal saving as a percentage of disposable personal income 11.4 3.3 4.5 3.2 4.8 5.1 4.3 3.9 44 Addenda: 45 Personal income excluding current transfer receipts, billions of chained (2017) dollars" 15,381.3 15,372.5 15,681.6 15,411.3 15,540.8 15,617.5 15,720.1 15,847 8 45 Disposable personal income: 46 Total, billions of chained (2017) dollars " 17,123.1 16,116.9 16,797.5 16,239.5 16,662.8 16,797.3 16,819.6 16,911.0 46 Per capita: 47 Current dollars 56, 156 56,068 60,326 57,386 59,424 60,203 60,580 61,094 47 48 Chained (2017) dollars 51,519 48,317 50,111 48,592 49,807 50,151 50,143 50,342 48 49 Population (midperiod, thousands)" 332,367 333,568 335,208 334,201 334,547 334,934 335,430 335,923 49 r Revised. Revisions include changes to series affected by the incorporation of revised wage and salary estimates for the third quarter of 2023