Part A:
In the table below is a list of domestic output and national income figures for a certain year. All figures are in billions. The questions that follow ask you to determine the major national income measures by both the expenditures and the income approaches. The result you obtain with the different methods should be the same.
- Using the data below, determine GDP by both the expenditures and income approaches.
- Then determine the National Income.
- Adjust National Income (from part b) as required to obtain Personal Income.
- Adjust Personal Income (from part c) as required to obtain Personal Savings.
Part B:
Compose a detailed narrative explaining how you derived your data.
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Purchases of non-durable goods
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$55
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State Government purchases
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8
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Transfer payments
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12
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New construction
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18
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Rental Income
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14
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Capital consumption allowances
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27
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Social Security contributions
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20
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Interest Income
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13
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Proprietors' income
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33
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Exports
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21
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Research and Development
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3
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Federal Government purchases
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56
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Dividends
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16
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Compensation of employees
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223
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Taxes on Production & Imports
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18
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Purchases of services
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15
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Undistributed corporate profits
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21
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New Plant & Equipment
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8
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Personal income taxes
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47
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Corporate income taxes
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19
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Corporate profits
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56
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Local Government purchases
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4
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Net private domestic investment
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33
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Net foreign factor income
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4
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Imports
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10
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Purchases of durable goods
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175
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Changes in inventories
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4
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