Disposable income is defined as national income - transfers + taxes. national income + transfers + taxes. national income - transfers - taxes. national income + transfers - taxes.
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- Using the following national income accounting data, compute (a) GDP, (b) NDP, and (c) NI. All figures are in billions. Category Billions Compensation of employees U.S. exports of goods and services Consumption of fixed capital Government purchases Taxes on production and imports Net private domestic investment Transfer payments U.S. imports of goods and services $ 224.2 17.8 11.8 59.4 14.4 52.1 13.9 16.5 Personal taxes 40.5 Net foreign factor income Personal consumption expenditures Statistical discrepancy 2.2 249.1 0.0 Instructions: Round your answers to 1 decimal place. a. GDP = $ 373.7 billion in b. NDP = $ 376.3 billion c. NI = $ 378.5 billionIf households pay $1,000 in interest payments and receive $1,200 in interest, wages equal $9,000, rental receipts on land are $200, total business profits before taxes are $2,200, depreciation is $1,750, and indirect business taxes are $1,000, then gross domestic income isQuestion 1 In a simple economy, suppose that all income is either compensation of employees or profits. Suppose also that there are no indirect taxes. Calculate gross domestic product from the following set of numbers. Show that the expenditure approach and the income approach add up to the same figure. Consumption $9500 Investment $3000 Depreciation $1750 Profits $2400 Exports $850 Compensation of employees $11500 Government purchases $3200 Direct taxes $1200 Saving $1600 Imports $900
- The following table shows the national income data for an economy in year 2020. ITEMS Dividends Interest on government loan Undistributed profit Gross interest Subsidies Corporate income taxes interest on consumer loan Indirect taxes Gross Domestic Product at factor cost Depreciation Wages and salaries Rent Corporate income before taxes You are required to calculate: (a) net interest. (b) corporate profit. (c) National Income. (d) Gross National Product at factor cost. Net factor income from abroad. RM (Million) 160 100 125 990 120 180 90 160 4,370 250 1,080 645 710wages = 700 goverment spending = 2,300 investment = 2,300 rent = 200 consuption = 7,400 net exports = 400 calculate the GDPConsider the following table: GDP Depreciation Corporate earnings Transfer Payments Personal Tax Payments National income (NI) equals $11800 billion. (Enter your response as an integer.) Personal income (PI) equals $ 11250 billion. (Enter your response as an integer.) Disposable personal income (DPI)equals $ billion. (Enter your response as an integer.) Billions of dollars $13,200 1,400 1,250 700 1,000
- Consider the following table: GDP Depreciation Corporate earnings Transfer Payments Personal Tax Payments National income (NI) equals $ Personal income (PI) equals $ Disposable personal income (DPI)equals $ billion. (Enter your response as an integer.) billion. (Enter your response as an integer.) billion. (Enter your response as an integer.) Billions of dollars $13,300 1,500 1,250 600 1,000Find a) Personal disposable income b) Personal income in the following question: Corporate tax 120 Direct taxes paid to households 200 Household expenditure on goods and services 500 Savings of private corporate sector 250 Interest on national debt 50 Household savings 100Consider the following table: GDP Depreciation Corporate earnings Transfer Payments Personal Tax Payments National income (NI) equals $11800 billion. (Enter your response as an integer.) Personal income (PI) equals $ billion. (Enter your response as an integer.) Billions of dollars $13,200 1,400 1,250 700 1,000
- The table below shows the data for the country of Magnolia. Complete the national income accounting framework by filling in the missing data. Remember to enter a minus (-) sign to indicate negative values. Expenditures Consumption Gross investment Government spending Net exports Gross domestic product at market prices 100 Less depreciation Less indirect taxes (net of subsidies) Net domestic product at basic prices +/- net foreign factor income Net national product at basic prices 320 350 30 260 50 160 70 1100 220 100 -10 780 320 06 160 130Although the gross domestic product (GDP) has historically been the strongest indicator of national revenue, it has a number of drawbacks as a gauge of both overall output and wellbeing.Government purchases in national income accounts would include expenditures for payments of: Multiple Choice public assistance for welfare recipients. Social Security checks to retirees. public assistance for military veterans. salaries for current U.S. military officers.