Question
In: Economics
Consider the national income accounting data provided in the following table: Item Billions of Dollars...
Consider the national income accounting data provided in the following table:
Item Billions of Dollars
Gross private domestic investment $45
Personal Taxes 30
Proprietor Income 50
Transfer Payments 20
Indirect business taxes 15
Corporate income taxes 10
Government expenditures 39
Consumption of fixed capital (depreciation) 10
U.S. exports 20
Compensation to Employees (wages) 175
Dividends 15
Corporate Ret. Earnings (Undistributed Profits) 5
Net foreign factor income earned in U.S. 3
Rental Income 25
Social security contributions 5
U.S. Imports 15
Interest Income 35
Statistical Discrepancies 2
i) Calculate the dollar value of gross domestic product (GDP).
ii) Determine the dollar value of consumption spending in the economy.
Solutions
Expert Solution
1)
|
Compensation of employees |
175 |
|
Proprietors' income |
50 |
|
Interest |
35 |
|
Rent |
25 |
|
Consumption of fixed capital |
10 |
|
Less: Net foreign factor income |
-3 |
|
292 |
2) GDP = Personal consumption expenditures + Gross private domestic investment + Government purchases + (Exports - Imports)
292 = Personal consumption expenditures + 45 + 39 + (20 - 15)
292 = Personal consumption expenditures + 89
Personal consumption expenditures = 203
Rahul Sunny answered 2 years agoRelated Solutions
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Item
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Consumption of Non Durable Goods
2,800
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1,000
Government purchases of Goods &
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2,675
Government Transfer Payments
450
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800
Imports
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Consider the following data for a hypothetical country for 2015. Total (Billions of Dollars) Consumption 12,268...
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Government Purchases
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Net Exports
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Date
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Price Index
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Real GDP
(billions of dollars per year,
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2015
18,238
100.00
17,432
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18,745
101.05
17,731
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19,543
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Corporate income
91
Exports
67
Wages and salaries
496
Net international income to the rest of the world
4
Gross investment
140
Government purchases
164
Indirect taxes
67
Personal consumption
440
Imports
24
Depreciation
69
Proprietors' incomes and rents
50
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2017
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107.95
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Items RM (Million)
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Gross private domestic investment expenditures 5980
Imports 9900
Exports 3000
Federal government expenditures 7900
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2
29.2
2011
3
37.8
2012
4
50.3
2013
5
59.8
2014
6
66.6
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Year
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billions)
2009
1
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2010
2
29.4
2011
3
37.8
2012
4
50.3
2013
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59.7
2014
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Year
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10.274
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2009
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