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In: Economics

Consider the following hypothetical data for the U.S. economy in 2020​ (in trillions of​ dollars), and...

Consider the following hypothetical data for the U.S. economy in 2020​ (in trillions of​ dollars), and assume that there are no statistical​ discrepancies, zero net incomes earned​ abroad, and zero taxes on production and imports of net subsidies. Category Value Category Value Corporate profits before taxes deducted ​$2.7 Exports ​$1.5 Proprietorial income 0.8 Net transfers and interest earnings 2.2 Rent 0.8 Nonincome expense items 1.8 Interest 0.9 Imports 1.8 Wages 8.4 Corporate taxes 0.6 Depreciation 1.2 Social security contributions 2.1 Consumption 12.1 Government spending 1.9 a. Calculate the gross domestic income LOADING.... ​$ nothing trillion.  ​(Enter your response rounded to one decimal​ place.)     Calculate GDP. ​$ nothing trillion.  ​(Enter your response rounded to one decimal​ place.)

Solutions

Expert Solution

Calculate the Gross Domestic Income -

Gross domestic income = Corporate profits before taxes + Proprietorial income + Rent + Non-income expenses items + Interest + Wages

Gross domestic income = $2.7 trillion + $0.8 trillion + $0.8 trillion + $1.8 trillion + $0.9 trillion + $8.4 trillion = $15.4 trillion

Thus,

The Gross Domestic Income is $15.4 trillion.

In a given year, gross domestic income is equal to the gross domestic product.

Thus,

The Gross Domestic Product is $15.4 trillion.

Rahul Sunny answered 2 years ago
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