GIVEN THE FOLLOWING NATIONAL INCOME ACCOUNTING DATA IN DOLLARS: UNDISTRIBUTED CO
ID: 1220281 • Letter: G
Question
GIVEN THE FOLLOWING NATIONAL INCOME ACCOUNTING DATA IN DOLLARS:
UNDISTRIBUTED CORPORATE PROFITS......................................................................................122.50
PERSONAL TAXES........................................................................................................................140.00
INTEREST PAID BY CONSUMERS...................................................................................................14.00
NET PRIVATE DOMESTIC INVESTMENT.........................................................................................175.00
PERSONAL CONSUMPTION EXPENDITURE...................................................................................875.00
SOCIAL SECURITY CONTRIBUTIONS...............................................................................................52.50
CORPORATE INCOME TAXES........................................................................................................140.00
TRANSFER PAYMENTS....................................................................................................................77.00
INDIRECT BUSINESS TAXES...........................................................................................................70.00
EXPORTS........................................................................................................................................84.00
GOVERNMENT PURCHASES OF GOODS AND SERVICES..............................................................315.00
GROSS PRIVATE DOMESTIC INVESTMENT....................................................................................262.50
IMPORTS.........................................................................................................................................77.00
CALCULATE GROSS NATIONAL PRODUCT, NET NATIONAL PRODUCT, NATIONAL INCOME, PERSONAL INCOME, DISPOSABLE PERSONAL INCOME AND PERSONAL SERVING.
Explanation / Answer
UNDISTRIBUTED CORPORATE PROFITS......................................................................................122.50
PERSONAL TAXES........................................................................................................................140.00
INTEREST PAID BY CONSUMERS...................................................................................................14.00
NET PRIVATE DOMESTIC INVESTMENT.........................................................................................175.00
PERSONAL CONSUMPTION EXPENDITURE...................................................................................875.00
SOCIAL SECURITY CONTRIBUTIONS...............................................................................................52.50
CORPORATE INCOME TAXES........................................................................................................140.00
TRANSFER PAYMENTS....................................................................................................................77.00
INDIRECT BUSINESS TAXES...........................................................................................................70.00
EXPORTS........................................................................................................................................84.00
GOVERNMENT PURCHASES OF GOODS AND SERVICES..............................................................315.00
GROSS PRIVATE DOMESTIC INVESTMENT....................................................................................262.50
IMPORTS.........................................................................................................................................77.00
Gross National Product (Expenditure method) = PERSONAL CONSUMPTION EXPENDITURE + GOVERNMENT PURCHASES OF GOODS AND SERVICES + GROSS PRIVATE DOMESTIC INVESTMENT + EXPORTS – IMPORTS
= 875 + 315 + 262.50 + 84 – 77
= 1459.5
Net National Product = PERSONAL CONSUMPTION EXPENDITURE + GOVERNMENT PURCHASES OF GOODS AND SERVICES + NET PRIVATE DOMESTIC INVESTMENT + EXPORTS – IMPORTS
= 875 + 315 + 175 + 84 – 77
= 1372
Gross National Income (Expenditure method) = PERSONAL CONSUMPTION EXPENDITURE + GOVERNMENT PURCHASES OF GOODS AND SERVICES + GROSS PRIVATE DOMESTIC INVESTMENT + EXPORTS – IMPORTS - INDIRECT BUSINESS TAXES
= 875 + 315 + 262.50 + 84 – 77 – 70
= 1389.5
Personal Income = NI – CORPORATE BUSINESS TAXES - UNDISTRIBUTED CORPORATE PROFITS + INTEREST PAID BY CONSUMERS + TRANSFER PAYMENTS
= 1389.5 – 140 – 122.50 + 14 +77
= 1218
Disposable PI = PI – Personal taxes
= 1218 – 140
= 1078
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