Read the directions for each section of this FRQ.Follow the directions completely.

Billions of dollars

Transfer payments $16

Government purchases $80

Personal taxes $38

Corporate income taxes $28

Taxes on production and imports $15

Social Security contributions $8

Undistributed corporate profits $19

Proprietors' income $25

Compensation of employees $258

Personal consumption expenditures $322

Consumption of fixed capital $4

Rents $33

U.S. Exports $14

Interest $32

Dividends $23

Imports to U.S. $17

Net private domestic investment $59

Net foreign factor income $10

Statistical discrepancy $35

The list of figures above is for a given year in billions of dollars.Using this data, compute:(a) GDP; (b) NDP; (c) NI; (d) PI; (e) DI; (f) Net exports.Be sure to label each part of each account.Calculate GDP using both the income and expenditure approaches.

year Nominal GDP price level index Real GDP Inflated (I)

Deflated (D)

1 $117 120 _____ _____

2 124 104 _____ _____

3 143 85 _____ _____

4 149 96 _____ _____

5 178 112 _____ _____

6 220 143 _____ _____

The data above show nominal GDP and the appropriate price index for several years.Compute real GDP for each year and indicate whether you have "inflated" or "deflated" nominal GDP in finding real GDP.All GDP are in billions.

NUMBER 3 CONTINUE DOWN

3.Which of the following are included and which are excluded in calculating this year's GDP?Explain in each instance.

(a) Social Security checks received by a retired person

(b) An increase in business inventories

(c) The income of a tax accountant working for a business

(d) Income received from interest on a corporate bond

(e) The cashing in of a U.S. savings bond