Personal consumption expenditures$5,850Exports750Government spending1,800Social Security taxes900Depreciation650Indirect business taxes750Imports1150Gross private domestic investment1200Corporate income taxes400Personal taxes1000Corporate profits550Transfer payments800 1) Compute GDP?2) Compute National Income?

Answered: Personal consumption expenditures…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Question

Personal consumption expenditures	$5,850
Exports	750
Government spending	1,800
Social Security taxes	900
Depreciation	650
Indirect business taxes	750
Imports	1150
Gross private domestic investment	1200
Corporate income taxes	400
Personal taxes	1000
Corporate profits	550
Transfer payments	800

1) Compute GDP?

2) Compute National Income?

Expert Solution

Step 1

$\begin{array}{rcl} 1 . Gross Domestic Product (GDP) & = & C + I + G + X - M \\ = & 5850 + 1200 + 1800 + (750 - 1150) \\ = & $ 8450 \end{array}$

Step 2

$2 . N a t i o n a l I n c o m e : N D P = G D P - D e p r e c i a t i o n N D P = 8450 - 650 N D P = $ 7800 National income = $ 7800$

Step by step

Solved in 3 steps

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions