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. The national income of this nation will be:

Question

Quizplus · Accepted Answer

National income is calculated by adding retained corporate earnings, social security taxes, and corporate taxes to personal income, and then subtracting social security benefit checks and the capital consumption allowance. This results in $250B + $2B + $15B + $40B - $16B - $32B = $259B.

Scenario 5.1 Suppose That Personal Income Is $250 Billion. Furthermore, Assume That