Macroeconomics Plus MyEconLab with Pearson eText (1-semester access)
6th Edition
ISBN: 9780134435046
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Question
Chapter 18, Problem 18.3.8PA
To determine
The adjustment made in the saving and investment equation.
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Students have asked these similar questions
Discuss how policymakers use national income data to make decisions about taxes,
spending, and other economic policies.
The following table shows macroeconomic data for a hypothetical country. All figures are in billions of dollars.
Billions of Dollars
Gross private domestic investment
120
Depreciation
35
Exports
60
Imports
55
Government spending
130
Personal consumption expenditures
325
Indirect business taxes (net of subsidies)
20
Personal taxes
90
Employee compensation
380
Corporate profits and FICA contributions
80
Rental income
25
Net interest
35
Proprietors' income
5
Transfer payments and other income
65
Using the expenditure or income approach, GDP for this country was $
billion.
Complete the following table by calculating national income, personal income, and disposable personal income for this country. (Note: Be sure to enter your figures in billions of dollars.)
Billions of Dollars
National Income
Personal Income
Disposable Personal Income
The following is data provided for the year 2020:
Capital consumption allowance $119.5
Wages 855.7
Business interest payments 61.6
Indirect business taxes 135.0
Rental income 26.5
Corporate profits 105.4
Proprietors’ income 93.0
Corporate dividends 32.7
Social insurance contributions 101.0
Personal taxes 170.7
Consumer interest payments 26.0
Interest paid by government and consumers 42.3
Government transfer payments 134.6
Business transfer payments 5.2
Personal consumption expenditures 877.0
National income 1,142.2
(a) Find the personal income
(b) Find the personal disposable income
(c) Find the personal saving
Chapter 18 Solutions
Macroeconomics Plus MyEconLab with Pearson eText (1-semester access)
Ch. 18 - Prob. 18.1.1RQCh. 18 - Prob. 18.1.2RQCh. 18 - Prob. 18.1.3RQCh. 18 - Prob. 18.1.4PACh. 18 - Prob. 18.1.5PACh. 18 - Prob. 18.1.6PACh. 18 - Prob. 18.1.7PACh. 18 - Prob. 18.1.8PACh. 18 - Prob. 18.1.9PACh. 18 - Prob. 18.1.10PA
Ch. 18 - Prob. 18.2.1RQCh. 18 - Prob. 18.2.2RQCh. 18 - Prob. 18.2.3RQCh. 18 - Prob. 18.2.4RQCh. 18 - Prob. 18.2.5PACh. 18 - Prob. 18.2.6PACh. 18 - Prob. 18.2.7PACh. 18 - Prob. 18.2.8PACh. 18 - Prob. 18.2.9PACh. 18 - Prob. 18.2.10PACh. 18 - Prob. 18.2.11PACh. 18 - Prob. 18.2.12PACh. 18 - Prob. 18.2.13PACh. 18 - Prob. 18.3.1RQCh. 18 - Prob. 18.3.2RQCh. 18 - Prob. 18.3.3RQCh. 18 - Prob. 18.3.4PACh. 18 - Prob. 18.3.5PACh. 18 - Prob. 18.3.6PACh. 18 - Prob. 18.3.7PACh. 18 - Prob. 18.3.8PACh. 18 - Prob. 18.3.9PACh. 18 - Prob. 18.3.10PACh. 18 - Prob. 18.4.1RQCh. 18 - Prob. 18.4.2RQCh. 18 - Prob. 18.4.3RQCh. 18 - Prob. 18.4.4PACh. 18 - Prob. 18.4.5PACh. 18 - Prob. 18.4.6PACh. 18 - Prob. 18.4.7PACh. 18 - Prob. 18.4.8PACh. 18 - Prob. 18.5.1RQCh. 18 - Prob. 18.5.2RQCh. 18 - Prob. 18.5.3RQCh. 18 - Prob. 18.5.4PACh. 18 - Prob. 18.5.5PACh. 18 - Prob. 18.5.6PACh. 18 - Prob. 18.5.7PACh. 18 - Prob. 18.1RDECh. 18 - Prob. 18.2RDECh. 18 - Prob. 18.3RDECh. 18 - Prob. 18.4RDECh. 18 - Prob. 18.5RDE
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