Use the following to answer questions 6-10: Answer the next question(s) on the b

ID: 1189742 • Letter: U

Question

Use the following to answer questions 6-10: Answer the next question(s) on the basis of the following data. All figures are in billions of dollars.

Personal taxes $40

Social Security Contributions $15

Indirect Business Taxes $20

Corporate Income Taxes $40

Transfer Payments $22

U.S. exports $24

Undistributed Corporate Profits $35

Government Purchases $90

Gross Private Domsetic Investment $75

U.S. Imports $22

Personal Consumption Expenditures $250

Depreciation $25

Net Foreign Factor Income earned in the U.S. $10

Refer to the above data. GDP is:

A. $390 B. $417 C. $422 D. $492

D. $402

Refer to the above data. DI is:

Refer to the above data. NDP is: A. $370 B. $402 C. $392 D. $467

GDP = Consumption + government spending + investment + exports - imports

GDP = Personal Consumption Expenditures + Government Purchases + Gross Private Domsetic Investment + U.S. exports - U.S. Imports

= $250 + $90 + $75 + $24 - $22

GDP = $417 option B is CORRECT

NDP = Personal Consumption Expenditures + Government Purchases + Gross Private Domsetic Investment + U.S. exports - U.S. Imports - depreciation

NDP = GDP - depreciation

NDP = $417- $25

NDP = $392 , OPTION C IS CORRECT.

NI= NDP - BUSINESS TRANSFER TAXES - NET FACTOR FOREIGN INCOME EARNED US

= $392-$20 -$10

NI =$362 , A is correct.

PI = NI -SOCIAL SECURITY - Corporate Income Taxes - Undistributed Corporate Profits + TRANSFER PAYMENTS

= $362 - $15 -$40 -$35 + $22 = $294 (A is correct)

DI = PI - personal taxes = $294 - $40 = $254 ( c is right one option

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