Using the expenditure or income method, GDP for this country was $ _____ billion
ID: 1131444 • Letter: U
Question
Using the expenditure or income method, GDP for this country was $ _____ billion.
10. Calculating GDP from raw economic data The following table shows macroeconomic data for a hypothetical country. All figures are in billions of dollars. Billions of Dollars Gross private domestic investment Depreciation Exports Imports Government spending Personal consumption expenditures Indirect business taxes (net of subsidies) Personal taxes Employee compensation Corporate profits and FICA contributions Rental income Net interest Proprietors' income Transfer payments and other income 120 35 60 130 325 20 90 380 80 25 35 65 Using the expenditure or income method, GDP for this country was $ billion Complete the following table by calculating national income, personal income, and disposable personal income for this country. (Note: Be sure to enter your figures in billions of dollars.) Billions of Dollars National Income Personal Income Disposable Personal IncomeExplanation / Answer
GDP = Consumption + investment + government spending + (Export – Import)
GDP = 325 + 120 + 130 + (60-55)
GDP = $580 (Billions)
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National income = GDP + net factor income from abroad – indirect taxes – depreciation
National income = 580 + (0) - 20 – 35 = $525 (Billions)
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Personal income = National income + transfer payments – corporate retained earnings
Personal income = 525 + 65 – 0 = $590 (Billions)
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Disposable personal income = Personal income – personal taxes
Disposable personal income = 590-90 = $500 (Billions)
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