Refer to Table 2.7. Use the information in the table to calculate the values for national income, personal income, and disposable personal income

What will be an ideal response?


National income = GDP - consumption of fixed capital = $475,000 - $16,975 = $458,025.
Personal income = (national income - retained earnings + transfer payments + interest on government bonds) = ($458,025 - $21,400 + $1,120 + $205 ) = $437,950.
Disposable personal income = personal income - personal tax payments = $437,950 - $880 = $437,070.

Economics

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