QUESTION 3 (10 MARKS)

Use the following data to answer the questions below.

Items

Dollar

Net Investment

110

Depreciation

30

Exports

50

Imports

30

Government purchases

150

Consumption

400

Indirect business taxes

35

Income earned but not received

60

Income received but not earned

70

Personal income taxes

50

Employee compensation

455

Corporate profits

60

Rental income

20

Net interest

30

Proprietor's income

40

Net earnings of US resources abroad

40

1. Calculate GDP using the income and expenditure methods

(4 marks)

1. Calculate net domestic product

(2 marks)

1. Calculate national income

(2 marks)

1. Calculate personal income

(1 mark)

1. Calculate disposable income.

(1 mark)