LA Business Daily

From the following, compute Net National Product and Disposable Income?

From the following, compute Net National Product and Disposable Income: (You must show your work, including all steps) 1.Consumption 180 2. Gross Private Domestic Investment 40 3. Corporate Profits After Taxes 20 4.Dividends 15 5. Depreciation Allowances 15 6. Transfer Payments 10 7. Government Expenditures on Goods and Services 40 8. Social Security Taxes (or contributions) 5 9. Indirect Business Taxes 10 10. Corporate Profit Taxes 10 11. Personal Income Taxes 0 12. Xn = (net exports) 0

Public Comments

1. GDP = C+I+G+NX = 180+40+40+0 = 260 NI = GDP-CC-IBT-NFI = 260-15-10-0 = 235 PI = NI-SST+TP-CBT-RE = 235-5+10-10-(20-15) = 225 DI = PI-PT = 225-0 = 225 C - consumption I - investmet G - gov. purch. NX - net export CC - capital consumption IBT - indirect business taxes NFI - net foreign income NI - national income PI - personal income DI - disposable income SST - soc. sec. contributions TP - transfer payments CBT - corporate income taxes RE - retained earnings (= corp net profits - dividends) PT - personal taxes