Category Billions Category Billions Personal consumption expenditures $255 Net exports 11 Net foreign factor income 4 Dividends 16 Transfer payments Compensation of employees 12 233 Rents 14 Taxes on production and imports 18 Statistical discrepancy 8. Undistributed corporate profits 21 Consumption of fixed capital (depreciation) 27 Personal taxes 26 Social Security contributions 20 Corporate income taxes 19 Interest Corporate profits Govemment purchases 13 66 Proprietors income 43 82 Personal saving 30 Net private domestic investment 33 Instructions: 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 NDP. GDP using the expenditures approach - $ billion GDP using the income approach $ billion NDP - $ 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).
Category Billions Category Billions Personal consumption expenditures $255 Net exports 11 Net foreign factor income 4 Dividends 16 Transfer payments Compensation of employees 12 233 Rents 14 Taxes on production and imports 18 Statistical discrepancy 8. Undistributed corporate profits 21 Consumption of fixed capital (depreciation) 27 Personal taxes 26 Social Security contributions 20 Corporate income taxes 19 Interest Corporate profits Govemment purchases 13 66 Proprietors income 43 82 Personal saving 30 Net private domestic investment 33 Instructions: 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 NDP. GDP using the expenditures approach - $ billion GDP using the income approach $ billion NDP - $ 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).
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter22: Inflation
Section: Chapter Questions
Problem 18RQ: What is deflation?
Related questions
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Transcribed Image Text:Category
Billions
Category
Billions
Personal consumption expenditures
$255 Net exports
11
Net foreign factor income
4
Dividends
16
Transfer payments
Compensation of employees
12
233
Rents
Taxes on production and imports
14
18
Statistical discrepancy
8
Undistributed corporate profits
21
Consumption of fixed capital (depreciation)
27
Personal taxes
26
Social Security contributions
20
Corporate income taxes
19
Interest
13
Corporate profits
56
Proprietors' income
Personal saving
43
Govermment purchases
82
30
Net private domestic investment
33
Instructions: 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 NDP.
GDP using the expenditures approach = $
billion
GDP using the income approach -$[
billion
NDP= $
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).
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