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    National Income Accounting-

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    Calculate national income from the following figures:

    Consumption $200 Billion
    Depreciation $20 Billion
    Retained earning $12 Billion
    Gross investment $30 Billion
    Imports $40 Billion
    Social Security taxes $25 Billion
    Exports $50 Billion
    Indirect business taxes $15 Billion
    Government purchases $60 Billion
    Personal income taxes $40 Billion

    b- If there were 80 million people in this country, what would be the GDP per capita be?
    c- If all prices were to double overnight, what would happen to the values of real and nominal GDP per capita?
    d- What is the value of the net investment ?

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    Solution Preview

    a) NI = Consumption + Investment + Government purchases + Exports - imports + income earned by residents abroad - income earned by foreigners at home -depreciation + business subsidied - ...

    Solution Summary

    This solution answers four questions concerning national income accounting, addressing GDP per capita, price increase and value of net investment.