Answer to Question #17556 in Macroeconomics for Colleen

Question

Find Nominal GDP using the INCOME approach given:

Corporate Profits 31
Consumption of Fixed Capital 35
Gross Private Domestic Investment 106
Personal Taxes 56
Personal Saving 82
Government Purchases 128
Imports 85
Interest 59
Net Foreign Factor Income Earned 2
Undistributed Corporate Profits 5
Exports 67
Personal Consumption Expenditures 377
Statistical Discrepancy 10
Taxes on Production and Imports 25
Social Security Contributions 39
Transfer Payments 48
Rents 13
Proprietors' Income 33
Corporate Income Taxes 6
Compensation of Employees 389

Answer 1

GDP = Employee compensation + Corporate profits + Proprietor's income + Rental income + Net interest + taxes less subsidies on production and imports
GDP = 389 + 31 + 33 + 13 + 59 + 25 = $550