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
Federal government purchases $150
Personal income taxes $35
State and local government purchases $25
Net domestic investment $75
A. Using the expenditure approach, compute GDP.
B. Compute personal income and disposable income.© BrainMass Inc. brainmass.com December 24, 2021, 4:54 pm ad1c9bdddf
Remember GDP = C + I + G + X
<br>G= Government Expenditures
<br>X= Net Exports
<br>Note the following:
<br>Government Expenditures is equal to ...
The expert computes personal income and disposable income.