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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).

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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).
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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