Answer the Next Question(S) on the Basis of the Following Data

Another practice of the expenditure approach. You will have to show your work.

Answer the next question(s) on the basis of the following data. All figures are in billions of dollars.

Personal income tax ------40

Social Security contributions ------15

Indirect business taxes ------20

Corporate income taxes ------40

Transfer payments ------22

US exports ------24

Undistributed corporate profits ------35

Government purchases ------90

Gross private domestic investment ------75

US imports ------22

Personal consumption expenditures ------250

Consumption of fixed capital ------25

Net foreign factor ------10

Look below for answers

GDP = C + Ig + G + Xn

250+75+90+(24-22)

GDP=417 billion

Gross investment was given so you did not have to add CFC to In.

NDP = 417 - CFC

-25

NDP = 392 billion

NI = 392 – IBT – NFF

-20 – 10

NI + 362 billion

PI = 362 – SSC – CIT – UCP + TP

-15 – 40 – 35 + 22

PI = 294 billion

DI = 294 – PIT

-40

DI = 254 billion