Questions 1-12: The following are theoretical national income accounting figures for the United States for a certain year:
Category Amount
Durable Consumer Goods $62
Net Foreign Factor Income -4
Transfer Payments 12
Rents 14
All business final purchases of machinery, equipment, and tools 20
Consumption of fixed capital 27
Social Security Contributions 20
Interest 13
Nodurable Consumer Goods 33
Proprietors’ Income 33
Value of Exports 33
Compensation of Employees 223
Personal Taxes 26
Taxes on Production and Imports 18
Undistributed Corporate Profits 21
Personal Savings 20
Value of Imports 22
Corporate Income Taxes 19
Changes in Inventories -7
Consumer Expenditures for Services 150
Corporate Profits 56
Government Purchases 72
Dividends 16
All construction 47
Statistical Discrepancy 0
Calculate the value of each of the following and SHOW YOUR CALCULATION OF EACH to get credit.
Consumption
Gross Private Domestic Investment
Net Exports
National Income
GDP from the EXPENDITURES Approach
GDP from the INCOME Approach
Net Domestic Product
Personal Income
Disposable Income
Net Private Domestic Investment
Carefully explain what this value of Net Investment implies for the future of this economy.
Carefully explain what the value of net foreign factor income given in the table means. Be PRECISE!