4. Below is a list of domestic output and national income figures fora certain year. All figures are in billions. The questions that followask you to determine the major national income measures by boththe expenditures and income approaches. The results you obtainwith the different methods should be the same. LO7.4Personal consumption expenditures$2457.Net foreign factor income4Transfer payments12Rents14Consumption of fixed capital (depreciation)27Statistical discrepancy8.Social Security contributions20Interest13Proprietors' income33Net exports11Dividends16Compensation of employees223Taxes on production and imports18Undistributed corporate profits21Personal taxes2619Corporate income taxes56Corporate profits72Government purchases33Net private domestic investment20Personal savinga. Using the above data, determine GDP by both the expendituresapproach and the income approach. Then determine NDP.b. Now determine NI in two ways: first, by making the requiredadditions or subtractions from NDP; and second, by addingup the types of income and taxes that make up NI.c. Adjust NI (from part b) as required to obtain PI.d. Adjust PI (from part c) as required to obtain DI.Me

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a. Using the above data, determine GDP by both the expenditures approach and the income approach. Then determine NDP. D. Now determine NI in two ways: first, by making the required additions or subtractions from NDP; and second, by adding up the types of income and taxes that make C. Adjust NI (from part b) as required to obtain PI. a. Adjust PI (from part c) as required to obtain DI. up NI.

a. Using the above data, determine GDP by both the expenditures approach and the income approach. Then determine NDP. D. Now determine NI in two ways: first, by making the required additions or subtractions from NDP; and second, by adding up the types of income and taxes that make C. Adjust NI (from part b) as required to obtain PI. a. Adjust PI (from part c) as required to obtain DI. up NI.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter18: Introduction To Macroeconomics: Unemployment, Inflation, And Economic Fluctuations

Section: Chapter Questions

Problem 18P

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