Question

only need help on 3

NATIONAL INCOME ACCOUNTS Use the data below to answer questions 1-3: Consumption Expenditures Wages Rent Interest Income Corporate Profits Proprietors' Income Farm Income Personal Income Personal Taxes $8,000 billion $7,000 billion 150 billion S 500 billion S 500 billion $800 billion S 150 billion $9,000 billion $ 900 billion 1. National income (NI) is equal to $7,000 billion $8,200 billion $9,900 billion $9,100 billion b. d. 2. Disposable income (DI) is equal to $7,100 billion $8,100 billion $9,100 billion $9,900 billion a. b. d. Personal saving is equal to (3. a. $1,000 billion $900 billion $100 billion $50 billion C. d. a. that is taken out of your pay and disposed of by government. b. available to households for spending and saving. c. earned by the factors of production in a given time period. 4. Disposable income is the income: d. received by persons from all sources before payment of person

Answer 1

3) Personal Saving = Disposable Income - Consumption Expenditure = $ (8100 - 8000) = $100

Option B is correct.

GDP is the total market value of all the final goods and services produced within a country in a given period of time.

According to Expenditure Method of National Income,

GDP = C + I + G + ( X - M)

$GDP deflator = (Nominal GDP / Real GDP)*100$

$Real GDP = ($11850 / 120)*100 = $9875$

Option C is correct.

Disposable Income is the income that is available to the household for spending and saving because this income is left with the individual after paying all the taxes.