Refer to Table 19-32. The table above represents hypothetical data from the National Income Accounts for 2015. Use the data to calculate personal income and disposable income
What will be an ideal response?
Personal income = National income - Retained earnings + Transfer payments + Interest on government bonds.
Substituting the table values:
Personal income = $11,200 - 560 + 2,200 + 300
= $13,140 billion.
Disposable personal income = Personal income - Personal taxes
= $13,140 - 1,400 = $11,740 billion.
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