Question

462 526 You are given the following information. Durable good consumption Residential investment Imports Government expenditure Receipts of factor income from abroad 987 1259 45 Personal income 7863 Nonresidential investment 66 893 1056 7638 Nondurable goods Exports Services Depreciation Change in inventories Payments of factor income abroad Personal taxes 125 26 59 2538 Find disposable personal income

Answer 1

Ans. Disposable personal income is the income after paying all personal taxes and used by consumers for the final expenditure on goods and services.

Disposable personal Income = Personal Income of the consumers - Personal Taxes paid by the consumers

= 7863 - 2538

= 5325

Hence, disposable personal income is 5325.