Homework Answers
A) GDP= private consumption expenditure+ gross investment expenditure+ goverment purchases of good and services+ net exports ( exports- imports)
GDP=600+180+400+(35-45)=600+180+400-10=1170
B)NDP=GDP- depreciation=1170-60=1110
C) National income =NDP+ net income from abroad- indirect business taxes=1110-0-50=1060
D) personal income=National income- undisturbed corporate profit+ transfer payment=1060-15+160=1205
E) personal disposable income=Personal income- corporate taxes - social security taxes - personal taxes=1205-20-135-320=730
F) saving=disposable income- consumption expenditure=730-600=130
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