igYCalibriY11 -Personal TaxesSocial Security ContributionsRentsBIU A A-Taxes on Production & ImportsCorporate Income TaxesInterestProprietor's IncomeTransfer PaymentsDividendsCompensation of EmployeesNet ExportsUndistributed Corporate ProfitsGovernment PurchasesNet Private Domestic InvestmentImportsPersonal Consumption ExpendituresConsumption of Fixed Capital (Depreciation)Net Foreign Factor IncomeCorporate ProfitsStatistical DiscrepancyC$ Bill.30151418202435121531511219233152833122856-35With the above data, follow Tables 7.3, 7.4, and 7.5 in the textbook for guidelines and acceptable stepsto calculate:(a) Gross Domestic Product (GDP) by both the expenditures and the income approaches.(b) National Income (NI) by making the required adjustments to Net Domestic Product (NDP).(c) Personal Income (PI) and Disposable Personal Income (DPI).MBEEChp Sheets & Slides| chrome-extension://bpmcpldpdmajfigpchkicefoigmkfalc/views/app.htmlcingCalibri11▾Consider the following national income accounting data for an economy in a recent year. All figures are inbillions of dollars.Proprietor's IncomeTransfer PaymentsDividendsPersonal TaxesSocial Security ContributionsRentsTaxes on Production & ImportsCorporate Income TaxesInterestBIU A A-Compensation of EmployeesNet ExportsUndistributed Corporate ProfitsGovernment PurchasesNet Private Domestic InvestmentCImportsPersonal Consumption ExpendituresConsumption of Fixed Capital (Depreciation)Net Foreign Factor IncomeCorporate ProfitsStatistical DiscrepancyWith the above data, follow Tables 7.3, 7.4, and 7.5 in the textbook for guidelines and acceptable stepsto calculate:(a) Gross Domestic Product (GDP) by both the expenditures and the income approaches.M 31A%$ Bill.301514182024351215315112192331528322856-35hp

The gross domestic product (GDP) is a measure that attempts to capture a country's economic output.…

Personal Taxes Social Security Contributions Rents Taxes on Production & Imports Corporate Income Taxes Interest Proprietor's Income Transfer Payments Dividends Compensation of Employees Net Exports Undistributed Corporate Profits Government Purchases Net Private Domestic Investment Imports Personal Consumption Expenditures Consumption of Fixed Capital (Depreciation) Net Foreign Factor Income Corporate Profits Statistical Discrepancy $Bill. 30 15 14 18 20 24 35 12 15 315 11 21 92 33 15 283 22 8 56 -35 With the above data, follow Tables 7.3, 7.4, and 7.5 in the textbook for guidelines and acceptable steps to calculate: (a) Gross Domestic Product (GDP) by both the expenditures and the income approaches. (b) National Income (NI) by making the required adjustments to Net Domestic Product (NDP). (c) Personal Income (PI) and Disposable Personal Income (DPI).

Personal Taxes Social Security Contributions Rents Taxes on Production & Imports Corporate Income Taxes Interest Proprietor's Income Transfer Payments Dividends Compensation of Employees Net Exports Undistributed Corporate Profits Government Purchases Net Private Domestic Investment Imports Personal Consumption Expenditures Consumption of Fixed Capital (Depreciation) Net Foreign Factor Income Corporate Profits Statistical Discrepancy $Bill. 30 15 14 18 20 24 35 12 15 315 11 21 92 33 15 283 22 8 56 -35 With the above data, follow Tables 7.3, 7.4, and 7.5 in the textbook for guidelines and acceptable steps to calculate: (a) Gross Domestic Product (GDP) by both the expenditures and the income approaches. (b) National Income (NI) by making the required adjustments to Net Domestic Product (NDP). (c) Personal Income (PI) and Disposable Personal Income (DPI).

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter8: Aggregate Demand And The Powerful Consumer

Section8.A: National Income Accounting

Problem 3TY

See similar textbooks

Similar questions

Assume there are only two producing sector Y & Z in an economy. Calculatea) Gross value added at market price by each sector b) National income from the followings:Items Amount in CroresNet factor income from abroad- 20Sales by Y= 1000Sales by Z= 2000Change in stock of Z= -200C Closingstock of Y= 50 Opening stock of Y= 100Consumption of fixed capital by Y & Z= 180Indirect taxes paid by Y & Z= 120Purchase of raw material by Y= 500Purchase of raw material by Z= 600Exports by Z= 70
A new factory in a small town has an annual payroll of $6 million. It is expected that 60% of this moneywill be spend on the town will by factory personnel. The people in the town who receive this money areexpected to spend 60% of what they receive in the town, and so on.(a) What is the total of all this spending (called the “total economic impact”) of the factory on the towneach year?(b) How much additional spending will be generated by a 10 million dollar tax rebate if 60% of allincome is spent?
During the 2007–2009 recession, the value of commonstocks in real terms fell by more than 50%. How mightthis decline in the stock market have affected aggregatedemand and thus contributed to the severity of therecession? Be specific about the mechanisms throughwhich the stock market decline affected the economy.
Consider the following NIPA data for 1Q2021 (First Quarter 20210 $ billlion) Investment: Non Residential $2,948.3 Exports $2,305.3 PCE Goods $5,183.5 Investment: Residential $1,043.7 Government Expendiures Federal $1,557.0 PCE Services $9,857.7 Imports $3,152.3 Governemnt Expenditures : State and local Goernent Expenditures $2,395.9 Change in private inventories -$90.1 2a. Compute the weights of each of PCE, GPDI, NX and GOV) in GDP 2b. Consider the following rates of change (%) for each of the above items. % change PCE 10.70% GPDI -5.00% NX -6.80% GOV 6.30%
National Income DeterminationThe following figures are from data on Good Island EconomyItems $mNet private investment 940Depreciation 56Compensation of employees 2 256Corporate taxes 416Personal taxes 756Personal Consumption expenditure 4 386Government purchases 3 182Indirect business taxes minus subsidies 482Payment of factor income to the rest of the world 95Corporate profits minus dividends 56Government transfer payments and interest 243Exports 855Receipts of factor income from abroad 186Imports of goods and services 385Social insurance payments 332 Required: Use the above information to answer the followingi.) Calculate for Good Island:a. Gross private investment b. Gross Domestic product c. Gross National Product d. Net National Product e. National income f. Personal Income g. Disposable Personal Income
Suppose the data BELOW is for a given year from the annual Economic Report of the President. Calculate GDP using the expenditure approach (Amount in billions of dollars): Corporate profits: $ 305Depreciation: $ 479Gross private domestic investment: $716Personal taxes: $ 565Personal saving: $120Government spending: 924Imports: $ 547Exports: $ 427Personal consumption expenditures: $ 2,966Indirect business taxes: $ 370Contributions for Social Security (FICA): $ 394Transfer payments and other income: $ 967
Output/Income Consumption Savings MPC MPS APC APS 0 80 0-80 = -80 - - - - 100 140 100-140 = -40 0.6 0.4 1.4 -0.4 200 200 200-200=0 0.6 0.4 1 0 300 260 300-260=40 0.6 0.4 0.8666666667 0.1333333333 400 320 400-320=80 0.6 0.4 0.8 0.2 a. Assume Y= 400 Calculate the level of Consumption Hint: plug in 400 for Y into the Consumption and Savings equations, Also, calculate the following APC (C/Y); APS (S/Y) b. Calculate the Multiplier 1/(1-MPC) c. Assume Y= C + I + G + X I=20; G=30 X=0 Use the equation derived in (d) above; use this to Plug in the value of C into the equation. I=Busines Investments G= Government Spending X=Net exports
You are given the following information about an economy: $millionsGDP at Market Prices 1,669.4Imports 290.5Gross Domestic Capital Formation 48.7Income accruing to the Public Sector 39.0Retained Business Earnings 75.9Exports 273.4Subsidies 16.8Factor Payments from Abroad 10.0Capital Consumption Allowance…
You are given the following information about an economy: $millionsGDP at Market Prices 1,669.4Imports 290.5Gross Domestic Capital Formation 48.7Income accruing to the Public Sector 39.0Retained Business Earnings 75.9Exports 273.4Subsidies 16.8Factor Payments from Abroad 10.0Capital Consumption Allowance…
Consider an economy called Xanadu for which desired aggregate consumptiondepends on income, Y. and the real interest rate, r, according toCd =100+0.7Y - 200r.Xanadu's GDP is Y = 1000 and government spending on goods and services is G=180. Xanadu's desired future capital stock is given byK* = 140 - 100ucwhere luCdenotes the user-cost of capital. The price of capital is PK =2, thephysical depreciation rate is d =0.1 and the existing capital stock is K0= 50. Trapital stock between any period t and the following period t+1 evolves accordng toKt+1 = It+(1-d)Kt where It the level of investment. Assume throughout that net factor payments from abroad (NFP) is equal to zero.Suppose instead that Xanadu is a small open economy facing a world interest rate of 1%. It follows that Xanadu's current account position is equal toA) -16B) -51C) -6D) -8
Determine the equilibrium income y and interest rate r,given the following information about the commodity market C=0.6Y+60 I=-40r+1300 Where C and I dwnote consumption and planned invesment ,respectively,and the following information about the money market Ms=600L1=0,2y L2=-30r+40
One day, Barry the Barber, Inc., collects $400 forhaircuts. Over this day, his equipment depreciates invalue by $50. Of the remaining $350, Barry sends $30to the government in sales taxes, takes home $220 inwages, and retains $100 in his business to add newequipment in the future. From the $220 that Barrytakes home, he pays $70 in income taxes. Based onthis information, compute Barry’s contribution to thefollowing measures of income.a. gross domestic productb. net national productc. national incomed. personal incomee. disposable personal income