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 ?
a) NI = Consumption + Investment + Government purchases + Exports - imports + income earned by residents abroad - income earned by foreigners at home -depreciation + business subsidied - ...
This solution answers four questions concerning national income accounting, addressing GDP per capita, price increase and value of net investment.