Question

The following is the information from national income account from the hypothetical.
GNP= 2400
GI=400
NI=150
Consumption=1500
G.P.G.S=480
NY=1925
WS=1460
PI+RI of P=160
Dividend=50
GBS=15
SIC=190
N.I.I=60
G.B.T.P=260
PT and N.T.P=300
Find the following
1.NNP
2.net export
3.indirect taxes
4.coperate profit
5. Taxes-transfers
6. Personal income
7. Disposable personal income
8. Personal saving

Answer 1

1. NNP

NDP = GNP - Depreciation

Net Private Investment= Gross Private Investment – Depreciation.

$150=480- Depreciation.$

$Depreciation. =480-150=330\\ NNP = GNP - Depreciation = 2400-330\\=2070$

2. Net exports

NX = GNP- Consumption - Gross investment - Government purchases

$2400-1500-400-480=20$

3:indirect taxes

indirect taxes=sales taxes-revenue

$300-190=110$

4.coperate profit

coperate profit=revenue -expenses

$2400-(160+300+1460)=480$

5.Government taxes minus transfers

T = Government expenditure + Budget Surplus

$= 1400-15=415$

6. Personal income

Personal income=GNP-retained profits + transfer payments

$2400-(260+1925)=60$

7. Disposable personal income

Disposable personal income = GNP - Government taxes minus transfers

$2400-415=1945$

8. Personal Saving

Personal Savings = Disposable personal income - Consumption

$1945-1500=485$