Question

Scenario 5.1 Suppose that personal income is $250 billion. Furthermore, assume that retained corporate earnings are $2 billion, social security taxes are $15 billion, social security benefit checks equal $16 billion, the capital consumption allowance is $32 billion, and corporate taxes amount to $40 billion. Refer to Scenario 5.1. Gross national product of this nation will be:

Answer 1

Gross national product of this nation will be $323 billion

Step-by-step explanation:

In order to calculate the Gross national product of this nation we would have to calculate the following formula:

Gross national product of this nation=personal income+retained corporate earnings+social security taxes+corporate taxes+capital consumption allowance-social security benefits

Gross national product of this nation=$250 billion+$2 billion+$15 billion+$40 billion+$32 billion-$16 billion

Gross national product of this nation=$323 billion

Gross national product of this nation will be $323 billion