Reference no: EM13854992

Part A:

In the table below is a list of domestic output and national income figures for a certain year.  All figures are in billions.  The questions that follow ask you to determine the major national income measures by both the expenditures and the income approaches.  The result you obtain with the different methods should be the same.

1. Using the data below, determine GDP by both the expenditures and income approaches. 
2. Then determine the National Income.
3. Adjust National Income (from part b) as required to obtain Personal Income.
4. Adjust Personal Income  (from part c) as required to obtain Personal Savings.

Part B:

Compose a detailed narrative explaining how you derived your data.

Purchases of non-durable goods	$55
State Government purchases	8
Transfer payments	12
New construction	18
Rental Income	14
Capital consumption allowances	27
Social Security contributions	20
Interest Income	13
Proprietors' income	33
Exports	21
Research and Development	3
Federal Government purchases	56
Dividends	16
Compensation of employees	223
Taxes on Production & Imports	18
Purchases of services	15
Undistributed corporate profits	21
New Plant & Equipment	8
Personal income taxes	47
Corporate income taxes	19
Corporate profits	56
Local Government purchases	4
Net private domestic investment	33
Net foreign factor income	4
Imports	10
Purchases of durable goods	175
Changes in inventories	4