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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)

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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

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