Question

Transfer Payments $54

Interest $150
Depreciation $36
Wages $67
Gross Private Investment $124
Business Profits $200
Indirect Business Taxes $74
Net foreign factor income $0
Net Exports $18
Government Purchases $156
Personal Consumption $304

Using the information above, GDP and National Income, in that order are:_______

Answer 1

• GDP = $602
• National Income = $492

Step-by-step explanation:

Gross Domestic Product is the final value of the goods and services produced in a country in a given year.

It is calculated as:

= Consumption + Investment + Government spending + Net Exports

= 304 + 124 + 156 + 18

= $602

National Income = GDP - Depreciation - Indirect business taxes

= 602 - 36 - 74

= $492