I have seen this question elsewhere on here. Without an answer. Below is a list

Question

I have seen this question elsewhere on here. Without an answer.

Below is a list of domestic output and national income figures for a given year. All figures are in billions. The questions that follow ask you to determine the major national income measures by both the expenditure and income methods. The results you obtain with the different methods should be the same.

a. Using the above data, determine GDP by both the expenditure and the income approaches and then determine NDP.

Instructions: Enter only whole numbers for your answers.

GDP, the expenditure approach: $ billion

GDP, the income approach: $ billion

NDP: $ billion

b. Now determine NI: first, by making the required additions and subtractions from GDP (Method 1), and second, by adding up the types of income and taxes that make up NI (Method 2).

Instructions: Enter only whole numbers for your answers.

Method 1: $ billion

Method 2: $ billion

c. Adjust National Income (from part b) as required to obtain PI.

Instructions: Enter only whole numbers for your answers.

Personal Income = $ billion

d. Adjust PI (from part c) as required to obtain DI.

Instructions: Enter a whole number for your answer.

Disposable Income = $ billion

Category Value Personal consumption expenditures $295 Net foreign factor income 4 Transfer payments 12 Rents 14 Statistical discrepancy 8 Consumption of fixed capital (depreciation) 27 Social security contributions 20 Interest 13 Proprietors' income 33 Net exports 11 Dividends 16 Compensation of employees 273 Taxes on production and imports 18 Undistributed corporate profits 21 Personal taxes 26 Corporate income taxes 19 Corporate profits 56 Government purchases 72 Net private domestic investment 33 Personal saving 20

Explanation / Answer

For Part C :

Net Domestic Product Approach: National Income = $411 (Net Domestic Product) - $8 (Statistical discrepancy) + $4 (Net foreign factor income) = $407.

Income and Taxes Approach: National Income = $273 (Compensation of employees) + $14 (Rents) + $13 (Interest) + $33 (Proprietor's income) + $56 (Corporate profits) + $18 (Taxes on production and imports) = $407.

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