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Brief Principles of Macroeconomics...

8th Edition
N. Gregory Mankiw
ISBN: 9781337091985

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Chapter
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BuyFindarrow_forward

Brief Principles of Macroeconomics...

8th Edition
N. Gregory Mankiw
ISBN: 9781337091985
Textbook Problem

One day, Barry the Barber, Inc., collects $400 for haircuts. Over this day, his equipment depreciates in value by $50. Of the remaining $350, Barry sends $30 to the government in sales taxes, takes home $220 in wages, and retains $100 in his business to add new equipment in the future. From the $220 that Barry takes home, he pays $70 in income taxes. Based on this information, compute Barry’s contribution to the following measures of income.

a. gross domestic product

b. net national product

c. national income

d. personal income

e. disposable personal income

Sub part (a):

To determine

GDP

Explanation

The GDP is the summation of the money value of all the goods and services produced within the political boundary of a country within a financial year. The expenditure is a main part of the GDP consideration because all the expenditures turn out to be someone's income which can be calculated in the GDP...

Sub part (b):

To determine

NNP.

Sub part (c):

To determine

National Income.

Sub part(d):

To determine

Personal Income.

Sub part (e):

To determine

Personal Disposable Income.

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