Below is a list of domestic output and national Income figures for a certain year. All figures are in billions. The questions that follow askyou to determine the major national income measures by both the expenditures and the income approaches.CategoryPersonal consumption expendituresNet foreign factor incomeTransfer paymentsRentsStatistical discrepancyConsumption of fixed capital (depreciation)Social Security contributionsInterestProprietors' incomePersonal savingBillions$2554121482720133320CategoryNet exportsDividendsCompensation of employeesTaxes on production and importsUndistributed corporate profitsPersonal taxesCorporate income taxesCorporate profitsGovernment purchasesNet private domestic investmentBillions11162331858236821197233Instructions: Enter your answers as a whole number.a. Using the above data, determine GDP by both the expenditures approach and the income approach. Then determine NDPGDP using the expenditures approach $ billionGDP using the income approach $1398 billionNDP = $32 billionb. Now determine NI in two ways: first, by making the required additions or subtractions from NDP (method 1); and second, by addingup the types of income and taxes that make up NI (method 2). b. Now determine NI in two ways: first, by making the required additions or subtractions from NDP (method 1); and second, by addingup the types of income and taxes that make up NI (method 2).Method 1 = $Method 2 $367 billion367 billionc. Adjust Nl (from part b) as required to obtain PL.PI $ 301 billiond. Adjust Pl (from part c) as required to obtain DI.JAMAAAADI S 275 billion

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a. Using the above data, determine GDP by both the expenditures approach and the income approach. Then determine NDP GDP using the expenditures approach $ 3 billion GDP using the income approach-$ 3 billion NOP $1 billion b. Now determine NI in two ways: first, by making the required additions or subtractions from NDP (method 1); and second, by adding up the types of income and taxes that make up NI (method 2).

a. Using the above data, determine GDP by both the expenditures approach and the income approach. Then determine NDP GDP using the expenditures approach $ 3 billion GDP using the income approach-$ 3 billion NOP $1 billion b. Now determine NI in two ways: first, by making the required additions or subtractions from NDP (method 1); and second, by adding up the types of income and taxes that make up NI (method 2).

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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