1. Answer the questions on the basis of the following national income data. All
ID: 1214479 • Letter: 1
Question
1. Answer the questions on the basis of the following national income data. All figures are in billions of dollars. Personal Taxes $23 Net Private Domestic investment 33 Net Exports 6 National Income 278 U.S. Exports 20 Gross Private Domestic Investment 56 Disposable 220 Taxes on Production and Imports 32 Undistributed Corporate Profits 15 Proprietors’ Income 45 Net Foreign Factors Income 0 Statistical Discrepancy 0 a. Calculate Net National Product. Show your work. b. Calculate Gross Domestic Product. Show your work. c. Calculate persona income. Show you work.
Explanation / Answer
GDP = Total National Income + Sales Taxes + Depreciation + Net Foreign Factor Income
National Income = 278
Sales Taxes = Taxes on Production and Imports = 32
Depriciation = Gross Investment - Net Investment = 56 - 33 = 23
Net Foreign Factor Income = 0
GDP = 278 + 32 +23 = 333
Net National Product = GDP - Depreciation + Net Foreign Factor Income
= 333 - 23
= 310
Personal Income =NI -Undistributed Corporate Profits
National Income or NI = 278
Undistributed Corporate Profits = 15
Personal Income = 278 - 15 = 263
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