Personal consumption expenditures |
$245 |
Net foreign factor income |
4 |
Transfer payments |
12 |
Rents |
14 |
Consumption of fixed capital (depreciation) |
27 |
Statistical discrepancy |
8 |
Social Security contributions |
20 |
Interest |
13 |
Proprietors’ income |
33 |
Net exports |
11 |
Dividends |
16 |
Compensation of employees |
223 |
Taxes on production and imports |
18 |
Undistributed corporate profits |
21 |
Personal taxes |
26 |
Corporate income taxes |
19 |
Corporate profits |
56 |
Government purchases |
72 |
Net private domestic investment |
33 |
Personal saving |
20 |
4. (Chapter 27) Use the attached National Income and Output Worksheet, and the national income data table on page 550 of your textbook (problem # 4) to compute the followings using both the Expenditure Approach and the Income Approach (be sure to fill in the values and show the calculations): (a) GDP, (b) NDP, (c) NI, (d); Adjust NI (from part c) as required to obtain PI; (e) Adjust PI (from part d) as required to obtain DI. Explain the followings NIPA concepts:
10pts.
National Income Accounting Worksheet
Measure |
Value-Exp. Approach |
Value-Income Approach |
Gross Domestic Product (GDP)= |
Components: C ( ) + Ig ( ) + G ( ) + = Xn ( ) =GDP= |
Components: Wages & Salaries ( ) + Rents ( ) + Interest ( ) + Proprietor’s Income ( ) + Corporate Profits ( ) + Taxes on Production and Imports ( ) -Net Foreign Factor Income ( ) + Statistical Discrepancy ( ) +Consumption of Fixed Capital ( ) =GDP= |
Net Domestic Product (NDP)= |
GDP ( ) - Consumption of Fixed Capital ( ) =NDP= |
GDP ( ) - Consumption of Fixed Capital ( ) =NDP= |
National Income (NI)= |
NDP -Statistical Discrepancy ( ) +Net Foreign Factor Income ( ) =NI= |
Components: Wages & Salaries ( ) + Rents ( ) + Interest ( ) + Proprietor’s Income ( ) + Corporate Profits ( ) + Taxes on Production and Imports ( ) =NI= |
Personal Income (PI)= |
National Income -Taxes on production and Imports ( ) -Social Security Contributions ( ) -Corporate Income Tax ( ) -Undistributed Corporate Profit ( ) + Transfer Payments ( ) =PI= |
National Income -Taxes on production and Imports ( ) -Social Security Contributions ( ) -Corporate Income Tax ( ) -Undistributed Corporate Profit ( ) + Transfer Payments ( ) =PI= |
Disposable Income (DI)= |
PI -Personal Taxes ( ) =DI= |
PI -Personal Taxes ( ) =DI= |
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