Question

Net Investment |
$100 |

Depreciation |
40 |

Export |
50 |

Import |
30 |

Government expenditure |
150 |

House hold consumption |
400 |

Indirect business taxes |
35 |

Income earned but not received |
60 |

Income received but not earned |
70 |

Personal income taxes |
50 |

Employee compensation |
460 |

Corporate profits |
60 |

Rental income |
20 |

Net interest |
40 |

Proprietors income |
55 |

USE THE TABLE ABOVE TO CALCULATE THE GDP

1.

a. Using the income base method.

b.Using the expenditure based method.

2. Calculate the followings also using the table above.

a. Gross investment

b. Net National Product

c. National Income

d. Personal Income

e. Disposable Personal Income

3. What percentage of personal income is employee compensation?

4. What is the tax rate on personal income?

Answer #1

Note here income and expenditure method will not equal due to missing information

Personal consumption expenditure 200, Personal Taxes 50, Exports
30, Depreciation 10, Government Purchases 50, Gross private
domestic Investment 40, Imports 40, Government transfer payments
20:
Please show and give an explanation to your answers
provided
a. What is the value of GDP?
b. What is the value of net domestic product?
c. What is the value of net investment
d. What is the value of net exports?
e. What is the value of disposable income?

Income
(Yd)
Consumption
Expenditure
Saving
Investment
Expenditure
Government
Expenditure
Net Export
Expenditure
Aggregate
Expenditure
$8000
$11,000
$2,500
$5,000
$12,500
12,000
14,000
2,500
5,000
12,500
20,000
20,000
2,500
5,000
12,500
30,000
27,500
2,500
5,000
12,500
50,000
42,500
2,500
5,000
12,500
100,000
80,000
2,500
5,000
12,500
1.Calculate savings, autonomous consumption, MPC, MPS, break
even income, and the equilibrium level of income (Y = AE = C + I +
G + NX) in the above given information.
2. Draw a graph...

Income
(Yd)
Consumption
Expenditure
Saving
Investment
Expenditure
Government
Expenditure
Net Export
Expenditure
Aggregate
Expenditure
$8000
$11,000
$2,500
$5,000
$12,500
12,000
14,000
2,500
5,000
12,500
20,000
20,000
2,500
5,000
12,500
30,000
27,500
2,500
5,000
12,500
50,000
42,500
2,500
5,000
12,500
100,000
80,000
2,500
5,000
12,500
Calculate savings, MPC, MPS, break even income, and the
equilibrium level of income (Y = AE = C + I + G +NX) in the above
given information.
Draw a graph showing disposable income (Yd)...

Using the following national income accounting data,
compute (a) Gross Domestic Product in Income and expenditure
approach (b)
Net Domestic Product, (c) National Income, (d) Personal Income and
(e) Disposable Income
Personal consumption expenditures $11,736
Compensation of employees $9,805
Gross private domestic investment $2,745
Rents $77
Government purchases $2,745
Interest $724
Net exports $810
Proprietorsâ€™ income $1,124
Corporate profits $2,048
Corporate income taxes $499
Taxes on production and imports $1,234
Net foreign factor income $111
Statistical discrepancy $45
Consumption of...

1. The consumption function, investment function, government
function, and net export functions are given as follows:
C = 100 + 0.8Yd , I = 200, G = 350, X = 500, IM = 100
+ 0.2Y, T = 10 + 0.05Y
At what levels of national income will government budget be
balanced?
At what levels of national income will trade be balanced?
What is the equation of the aggregate expenditure curve?
Calculate the equilibrium level of national income.
Calculate the...

Suppose the government raises its revenue by a net tax of 40
percent on income, t = 0.4. The marginal propensity to consume out
of disposable income is 0.9 and the marginal propensity to import
is 0.2.
Note: Keep as much precision as possible during
your calculations. Your final answer should be accurate to at least
two decimal places.
a) What is the slope of the AE function? What
is the size of the multiplier?
b) Autonomous expenditure by the...

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
Proprietorsâ€™ 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...

Suppose the government raises its revenue by a net tax of 40
percent on income, t = 0.4. The marginal propensity to consume out
of disposable income is 0.9 and the marginal propensity to import
is 0.25.
Note: Keep as much precision as possible during
your calculations. Your final answer should be accurate to at least
two decimal places.
a) What is the slope of the AE function? What is
the size of the multiplier?
Slope of AE = 0Multiplier...

The table below shows the data for the country of Magnolia.
Complete the national income accounting framework by filling in the
missing data.
Expenditures
Incomes
Consumption
Compensation of employees
820
Gross investment
360
Gross operating surplus
360
Government spending
390
Gross mixed income
Net exports
-30
Taxes less subsidies on production
70
Indirect taxes (net of subsidies)
150
Gross domestic product at market prices
Gross domestic income at market prices
Less depreciation
Less depreciation
110
Less indirect taxes (net of...

Aggregate Output/Income
Net Taxes
Planned Investment
Aggregate Consumption
Government Spending
1,000
200
200
680
200
1,100
200
200
760
200
1,200
200
200
840
200
1,300
200
200
920
200
1,400
200
200
1,000
200
1,500
200
200
1080
200
1,600
200
200
1,160
200
Please show calculation
a. Complete the table by
determining the aggregate expenditure, the unplanned inventory
change, savings and disposable income at all income
levels
b. Determine
the marginal propensity to consume (MPC) and marginal...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 7 minutes ago

asked 7 minutes ago

asked 20 minutes ago

asked 23 minutes ago

asked 25 minutes ago

asked 34 minutes ago

asked 44 minutes ago

asked 45 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago