Could you please show me how you came to these solutions as well? Consider the f

Question

Could you please show me how you came to these solutions as well?

Consider the following hypothetical data for the U.S. economy in 2018 (in trillions of dollars), and assume that there are no statistical discrepancies or other adjustments. Category Value Category Value $1.5 1.8 Profits Indirect business taxes and transfers Rent Interest Wages Depreciation Consumption $2.81 Exports Government transfer payments 0.7 Personal income taxes and nontax payments 0.8 Imports 8.3 Corporate taxes and retained earnings 1.1 Social security contributions 0.4 12.9 Government spendin a. Calculate the gross domestic income. $14.6 trillion. (Enter your response rounded to one decimal place.) Calculate GDP S 14.6 trillion. (Enter your response rounded to one decimal place.) b. Calculate gross private domestic investment. S 0.3 trillion. (Enter your response rounded to one decimal place.) c. Based on the above information, calculate personal income.Strillion. (Enter your response rounded to one decimal place.) Calculate personal disposable income. trillion. (Enter your response rounded to one decimal place.)

Explanation / Answer

Answer:

a). Solution:- Calculation of gross domestic income :-

Gross domestic income is calculated using income method of measuring the national income.

Gross domestic income = Profits + Rent + Interest + Wages + Depreciation + Indirect business taxes & tranfers.

= 2.6 + 0.6 + 0.8 + 8.1 + 1.2 + 0.8

= $ 14.1 Trillion.

Conclusion:- Gross domestic income of U.S. Economy in the Year 2018 = $ 14.1 Trillion.

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