Explore BrainMass
Share

Explore BrainMass

    National Income Accounting Problem

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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.

    © BrainMass Inc. brainmass.com October 9, 2019, 3:50 pm ad1c9bdddf
    https://brainmass.com/economics/unemployment/national-income-accounting-problem-14622

    Solution Preview

    Remember GDP = C + I + G + X
    <br>C= Consumption
    <br>I= Investments
    <br>G= Government Expenditures
    <br>X= Net Exports
    <br>
    <br>Note the following:
    <br>
    <br>Government Expenditures is equal to ...

    Solution Summary

    The expert computes personal income and disposable income.

    $2.19