Below is a list of domestic output and national income figures for a certain year. All figures are in billions. The questions that follow ask you to determine the major national income measures by both the expenditures and the income approaches. The results you obtain with the different methods should be the same. Using the below data, determine the GDP by both the expenditures and the income approaches. Then determine NDP, GNP and GDP at factor cost. Now determine NI in two ways: first, by making the required additions or subtractions from NDP; and second, by adding up the types of income and taxes that make up NI National income Personal income Disposable national income
Below is a list of domestic output and
- Using the below data, determine the GDP by both the expenditures and the income approaches. Then determine NDP, GNP and GDP at factor cost.
- Now determine NI in two ways: first, by making the required additions or subtractions from NDP; and second, by adding up the types of income and taxes that make up NI
- National income
- Personal income
- Disposable national income
|
Personal Consumption Expenditures |
2450 |
|
Net foreign factor income |
40 |
|
Transfer payments |
120 |
|
Rents |
140 |
|
Statistical discrepancy |
80 |
|
Consumption of fixed capital ( |
270 |
|
Social security contributions |
200 |
|
Interest |
130 |
|
Proprietors’ income |
330 |
|
Net exports |
110 |
|
Dividends |
160 |
|
Compensation of employees |
2230 |
|
Taxes on production and imports |
180 |
|
Undistributed corporate profits |
210 |
|
Personal taxes |
260 |
|
Corporate income taxes |
190 |
|
Corporate profits |
560 |
|
Government purchases |
720 |
|
Net domestic investment |
330 |
|
Personal saving |
200 |
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