01 May Question: Billions of Dollars 80 45 40 15 160 375 35 Investment Capital consumption allowance (depreciation…
Billions of Dollars 80 45 40 15 160 375 35 Investment Capital consumption allowance (depreciation) Exports Imports Government purchases Consumption Indirect business taxes Social insurance taxes Corporate profit taxes Undistributed corporate profits Transfer payments Personal taxes Compensation of employees Corporate profits Rental income (of persons) Net interest Proprietors’ income Income earned from the rest of the world Income earned by the rest of the world 4 110 455 90 25 25 80 40
The five components of GDP from the table that together sum to national income are an Use the following table to derive personal income and national income (in billions of dollars). Specify what needs to be added to disposable income to arrive at personal income, and explain how personal income should be adjusted to find national income. Billions of Dollars Disposable income 525 Plus Personal income Plus social insurance taxes Plus undistributed corporate profits + 6 Minus National income
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