mimi 3.jpg - made to go from national income to GDP He shows the amount of income paid as compensation of employers rents interest proprietors Reporate

mimi 3.jpg - made to go from national income to GDP He...

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Unformatted text preview: made to go from national income to GDP? He shows the amount of income paid as compensation of employers, rents, interest, proprietors Reporate income tax, dlindenads, and undistributed corporate profit. This amount will be less than GDP. Adoes the full expenditures on all final goods and services To get to GOP, three items seed to be added. ) income First, indirect business taxes that are paid to government should be added These taves include Parasites taxes, excise taxes. business property taxes, license fees and custom duties, Second, there is an ication for the consumption of fixed capital (depreciation) that must be added so national income. Third, net areign factor income is added to national income. This net foreign factor income is the e is the difference between what foreign-owned resources carried in the U.S. minus what U 5-owned resources earn abroad GDP represents equals GDP "domestic" production, regardless of whether the domestic production with the U.S. was foreign or U S. owned national income plus indirect business taxes. plus consumption of fixed capital, plus set foreign factor income 16.How does NDP differ from GDP? The difference between NDP and GDP is the value of the consumption of fixed capital of depreciation allowance GDP includes gross private investment expenditures. NDP includes net private investment expenditures after the depreciation allowance has been subtracted from gross investment 17. Howdoes the personal income measure differ from the disposable income measure? Disposable income is spendable income after personal taxes have been subtracted from personal income 1 8. The following is a list of figures for a given year in billions of dollars. Using this data, compute: (a) GDP. NDP. (C) NI; (d) Pl. (e) DI; (f) Net exports Transfer payments 5 16 Government purchases 80 Personal taxes 38 Corporate income taxes 28 Indirect business taxes Social security contributions Undistributed corporate profits 19 Proprietor's income 25 Compensation of employees .258 Personal consumption expenditures.. 322 by-Consumption of fixed capital.. Rents U.S. exports Corporate profits Interest Dividends Imports to US Gross private domestic investment.. ".. 63 Net foreign factor income earned in the US ( GDP $462. (6) NDP 5458. (c) NI $435, (d) PI $394 (e) DI $356. (1) Net exports 5-3. C:Mohammed & Khamis...
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  • Fall '18
  • PROF. MSUYA

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