Question

Exhibit:    Totals Recorded for the United States    (billions of dollars)* Durable goods consumption $ 497...

Exhibit:    Totals Recorded for the United States    (billions of dollars)*

Durable goods consumption $ 497

Nondurable goods consumption 1,301

Services consumption 2,342

Business fixed investment 566

Residential fixed investment 224

Inventory investment 7

Federal government purchases 449

State and local government purchases 683

Exports 640

Imports 670

Excess of GNP over GDP 7

Depreciation 658

Indirect business taxes 551

Corporate profits (includes wage accruals less disbursements) 387

Social insurance contributions 556

Net interest 442

Dividends (includes business transfer payments) 162

Government transfers to individuals 837

Personal interest income 694

Personal tax and nontax payments 645

What were net national product, national income, personal income, and disposable personal income? (With clear calculation process)

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Net national product:- Gross national products - Depreciation

Gross national Product = National Income + net income earned by domestic residents from overseas investments - net income earned by foreign residents from domestic investments

Gross national product = $6039 + $7 (excess of GNP over GDP is given as $7)

GNP = $6046

Net national product = $6046 - $658 = $5388

National Income = GDP = C + I + G + X - M

C = Durable goods consumption + Nondurable goods consumption + Services consumption = $4140

I = Business fixed investment + Residential fixed investment + Inventory investment = $797

G = Federal government purchases + State and local government purchases = $1132

X = Exports = $640

M = Imports = $670

Thus national income is $6039

Personal Income:- National income - Social Security Contribution Tax - Corporate Income tax - Retained Earnings + Transfer Payments.

Personal Income = $6039 - $551 + $162 = $5650

Disposable personal Income:- Personal income - Personal Tax

Disposable personal Income = $5650 - $645 = $5005

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Data $Billions Government purchases of goods 1,000 Payments of factor income to the rest of the...
Data $Billions Government purchases of goods 1,000 Payments of factor income to the rest of the world 60 Imports 250 Change in business inventories 40 Durable goods 250 Nondurable goods 650 Exports 150 Residential investment 150 Local government purchases 350 Depreciation 60 Receipts of factor income to the rest of the world 80 Indirect taxes 70 Subsidies 30 Determine: By showing calculation i)             The value of NDP ii)               The value of GNP iii)             The value of NNP iv)           The value of National Income              
The following table shows the National Income and Product Account of the United States and the...
The following table shows the National Income and Product Account of the United States and the Consolidated Government Account one decade ago, in 2007.            U.S. National Income Account and Consolidated Government Account, 2007                                                            (In billions of dollars) ______________________________________________________________________________                                                                                                                                                                                                                         2007 ______________________________________________________________________________ Summary National Income and Product Accounts Gross National Product (GNP)                                                                                                                                              13,937 Private Consumption                                                                                                                                                                          9,734 Private Investment                                                                                                                            ...
Components Trillions of $ Consumption $10 Durable Goods $3 Nondurable Goods $4 Investment $2 Services $10...
Components Trillions of $ Consumption $10 Durable Goods $3 Nondurable Goods $4 Investment $2 Services $10 Government Purchases $5 Structures $1 Changes in Inventories $1 Exports $3 Imports -$1 Income receipts from rest of the world $2 Income receipts to rest of the world $1 Depreciation $3 According to the data above, calculate net exports. With the data above, use both the demand side or supply side approach to calculate GDP for this economy. Using the data above calculate Net...
National Income Accounts (dollar figures are in billions) Expenditures for consumer goods and services $4,565 Exports...
National Income Accounts (dollar figures are in billions) Expenditures for consumer goods and services $4,565 Exports $740 Government purchases of goods and services $1,465 Social Security taxes $510 Net investment $225 Indirect business taxes $520 Imports $825 Gross investment $865 Corporate income taxes $185 Personal income taxes $750 Corporate retained earnings $45 Net foreign factor income $20 Government transfer payments to households $690 Net interest payments to households $0 On the basis of Table 5.1, gross domestic product is Multiple...
Use the information in the following table to answer questions 1 through 4: Exports of goods...
Use the information in the following table to answer questions 1 through 4: Exports of goods & services: $1000 Imports of goods & services: $1200 Net change in assets owned abroad: $100 Net change in foreign owned assets at home: $360 Unilateral transfers received: $130 Unilateral transfers paid: $200 Investment income paid to foreigners: $380 Investment income received from foreigners: $400 Balance on the capital account: $0 Statistical Discrepancies: $0 1. The balance on the current account is _________. A)...
Part 1 Consider the table below. All data are for 2004 and are in billions of...
Part 1 Consider the table below. All data are for 2004 and are in billions of dollars, except the CPI, which is a percentage. Capital Consumption Allowance $ 1,435.3 Billion Consumer Spending $ 8,214.3 Billion Corporate Income Taxes $ 360.1 Billion CPI (2004) 105.0 Dividends $ 200.3 Billion Exports $ 1,173.8 Billion Factor Income Payments made to Foreign Entities $ 361.7 Billion Factor Income Receipts from Foreign Entities $ 415.4 Billion Government Spending $ 2,215.9 Billion Gross Private Domestic Investment...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT