Question

Net Investment $100 Depreciation     40 Export     50 Import     30 Government expenditure 150 House...

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?

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Answer #1

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

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