Question

1. Calculate GDP, NDP, NI, PI, and DI from the following information. All numbers are in...

1. Calculate GDP, NDP, NI, PI, and DI from the following information. All numbers are in billions of dollars.

Wages \$ 26,500
Consumption Expenditures \$36,000
Government Expenditures \$18,500
Imports \$20,330
Exports \$18,580
Property Taxes \$16,000
Sales Taxes \$9,715
Retained earnings \$1,310
Personal Income Taxes \$2,200
Private Domestic Investment Expenditures \$15,650
Interest Income \$1,940
Pay Roll taxes \$1,300
Transfer Payments \$880

Depreciation \$1,300
Corporate Income Taxes \$320

Gross domestic product (GDP) = Consumption Expenditures + Private Domestic Investment Expenditures + Government Expenditures + Exports - Imports

GDP = C + I + G + X - M

GDP = \$36,000 + \$15,650 + \$18,500 + \$18,580 - \$20,330

Gross domestic product (GDP) = \$68,400

Net domestic product (NDP) = GDP – Depreciation

NDP = \$68,400 - \$1,300

Net domestic product (NDP) = \$67,100

NI = \$67,100 - \$2,520 + \$160

National income (NI) = \$64,740

Personal income (PI) = NI - Retained earnings - Corporate Income Taxes – Depreciation + Transfer Payments

PI = \$64,740 - \$1,310 - \$320 - \$1,300 + \$880

Personal income (PI) = \$62,690

Disposable income (DI) = PI - Personal Income Taxes

DI = \$62,690 - \$2,200

Disposable income (DI) = \$ 60,490

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