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 results you obtain with the different methods should be the same. Personal consumption expenditures $245
Net Foreign Factor Income 4
Transfer Payments 12
Rents 14
Consumption of fixed capital(depreciation) 27
Statistical Discrepancy 8
Social Security Contributions 20
Interest 13
Proprietors Income 33
Net exports 11
Dividends 16
Compensation of employees 223
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
1. Using the above data, determine GDP by both the expenditures and income approaches.
A.) expenditures approach GDP
B.)income approach GDP.
2. Determine NDP.
3. Now determine NI in two ways: first ,by making the required additions or subtractions from NDP; and second by adding up the types of income and taxes that make up NI.
4. Adjust NI (from part b) as required to obtain PI.
5. Adjust PI (from part c) as required to obtain DI.