Question

Suppose that in 2018, the national income in the United States was $200 billion, depreciation was $15 billion, personal taxes were $20 billion, and transfer payments were $10 billion. Gross domestic product in 2018 is_________.

A. $220 billion
B. $215 billion
c. $185 billion
D. $245 billion

Answer 1

Option (B) is correct.

Step-by-step explanation:

Given that,

National income = $200 billion

Depreciation = $15 billion

Personal taxes = $20 billion

Transfer payments = $10 billion

Gross domestic product in 2018:

= National income + Depreciation

= $200 billion + $15 billion

= $215 billion

Therefore, the Gross domestic product of United States in 2018 is $215 billion.