Question

If households pay $1,000 in interest payments and receive $1,200 in interest, wages equal $8,000,rental receipts on land are $200, total business profits before taxes are $2,200, depreciation is$1,750, and indirect business taxes are $1,000, then gross domestic income is

Answer 1

gross domestic income is $13350

Step-by-step explanation:

Given data

pay interest payments = $1,000

receive in interest = $1,200

wages = $8,000

rental receipt land = $200

profits = $2200

depreciation = $1,750

business taxes = $1000

to find out

gross domestic income

solution

we will find out gross domestic income by this given formula

gross domestic income is = profit + wages + rental receipt land + interest receive + tax + depreciation - interest paid

so

put all these value we get gross domestic income

gross domestic income = 2200 + 8000 + 200 + 1200 + 1000 + 1750 - 1000

gross domestic income = 13350

so gross domestic income is $13350