Amount (billions of dollars) Corporate profits    305 Depreciation  479 Gross private domestic investment      716 Personal taxes   565 Personal saving 120 Government spending   924 Imports            547 Net interest    337 Compensation of employees  2,648 Rental income   19 Exports             427 Personal consumption expenditures    2,966 Indirect business taxes   370 Contributions for Social Security (FICA)   394 Transfer payments and other income  967 Proprietors’ income    328 Suppose the data in Exhibit 1 are for a given year from the annual Economic Report of the President.  Calculate GDP using the expenditure and income approaches. Using the data in Exhibit 1, compute national income (NI) by making the required subtraction from GDP. Again using the data from Exhibit 1, derive personal income (PI) from national income (NI). Then make the required adjustments to PI to obtain disposable personal income (DI).

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