Gross Income Business
Question: What is the gross domestic product, net domestic product, and national income for the following?
Billions of Dollars
Consumption 400
Net Exports -20
Transfer Payments 20
Gross investment 100
Social Security Contributions 10
Government Purchases 120
Net Investment 50
Dividends 20
Indirect Business Tax 10
Corporate Income Tax 30
Personal Income Tax 60
Undistributed Corporate Profits 20Yes, I do have the approaches for solving them, but they have not got me anywhere. Any help in solving these is greatly appreciated. Been struggling with these for a while.
Answer: Expenditure approach:
GDP = C+Ig+G+NX = 400+100+120-20 = 600NDP = GDP-CC
CC = Ig-In = 100-50 = 50
NDP = 600-50 = 550NI = NDP-IBT = GDP-CC-IBT = 550-10 = 540
PI = NI-SSC-CIT-UCP+TP = 540-10-30-20+20 = 500
DI = PI-PIT = 500-60 = 440
Corporate profits = Div+UCP+CIT = 20+20+30 = 70
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