Answer the question on the basis of the following national income data for the economy. All figures are in billions of dollars. Personal Consumption Expenditures 400 Government Purchases 128 Gross Private Domestic Investment 88 Net Exports 7 Net Foreign Factor Income 0 Consumption of Fixed Capital 43 Taxes on Production and Imports 50 Compensation of Employees 369 Rents 12 Interests 15 Proprietor's Income 52 Corporate Income Taxes 36 Dividends 24 Undistributed Corporate Profits 22 Statistical Discrepancy 0 Refer to the above data. The national income is:
a) $561.
b) $573.
c) $580.
d) $530.
c) $580.
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Points where the aggregate expenditure (AE) curve lie above the 45° line are points where aggregate planned expenditure is
A) greater than real GDP. B) equal to real GDP. C) less than real GDP. D) the inverse of real GDP. E) not related to real GDP.
A ten-year-old goes to a baseball convention this week and purchases a newly-autographed Barry Bonds baseball for $100. How would this affect GDP?
A) It wouldn't. B) GDP would increase by $10—reflecting the market price of the ball itself. C) GDP would increase by $90—reflecting the market price of Bonds' autograph. D) GDP would increase by $100—reflecting the market price of the autographed ball. E) GDP would have increased were the autographed ball purchased by somebody 16 years or older.
International evidence on the relationship of per capita income and the saving rate suggests that ________
A) a high level of income per person requires a high saving rate B) a high saving rate guarantees a high level of income per person C) a high saving rate might result in a high level of income per person D) a high saving rate requires a high level of income per person
If incomes are rising, in the market for a normal good,
a. its price will rise and the quantity exchanged will rise. b. its price will rise and the quantity exchanged will fall. c. its price will fall and the quantity exchanged will rise. d. its price will fall and the quantity exchanged will fall.