67 083
Assignments Done
99,3%
Successfully Done
In November 2018

Answer to Question #47887 in Macroeconomics for dere

Question #47887
Given U.S incomes and Expenditures as follows

wage-------- 100
Social security contributions---- 7
interest income ----- 5
personal taxes------- 20
consumption expenditure by households 60
Government purchases of goods and services 150
tranfer payments 50
coporate profit 100
invetment expenditure by business 100
corporate income tax 30
indirect business taxes 20
undistrubuted corporate profit 50
consumption of fixed capital(depreciation) 90
non income charges 40
rents 65
expenditure by foriegners 25
Net foreign factor income earned domestically 25
answer
a) using expenditure approach, what is GDP?
b)using income approach,what is GDP?
c) what is Net domestic product?
d) NI?
e) PI?
f) DI?
Expert's answer
A) Expenditure approach: 
GDP = Y = Consumption (C) + Investment (I) + Government purchases (G) + Export (Ex) - Import (Im) = 60 + 100 + 150 + 40 = 250
B) Income approach:
GDP = Labor Income (W) + Rental Income (R) + Interest Income (i) + Profits (PR) = 100 - 20 + 65 + 5 + 100 = 250
C) NDP = GDP - Capital Consumption (CC) = 250 - 90 = 160
D) NI = GDP + NFI = 250 + 25 = 275
E) Personal income (PI) = NI - corporate taxes - retained earnings - social security + transfer payments + net interest = 275 - 30 - 50 - 7 + 50 = 238 
F) DI = PI - Personal taxes = 238 - 20 = 218

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be first!

Leave a comment

Ask Your question

Submit
Privacy policy Terms and Conditions