National Income Accounting Problem
National Income Accounting (example problem)
Selected national income accounting data in $ Billions:
Personal consumption $250
Unemployment benefits $20
Rental income $15
Dividend income $25
Interest income $10
Wages $220
Federal government purchases $150
Personal income taxes $35
State and local government purchases $25
Exports $45
Net domestic investment $75
Imports $50
Required:
A. Using the expenditure approach, compute GDP.
B. Compute personal income and disposable income.
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Solution Preview
Remember GDP = C + I + G + X
<br>C= Consumption
<br>I= Investments
<br>G= Government Expenditures
<br>X= Net Exports
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<br>Note the following:
<br>
<br>Government Expenditures is equal to ...
Solution Summary
The expert computes personal income and disposable income.