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Exhibit 11-8 GDP Data (Billions of Dollars) -In Exhibit 11-8,compute National Income (NI)

Question 173

Multiple Choice

Exhibit 11-8 GDP data (billions of dollars)
 Indirect business taxes $600 Depreciation 950 Change in business inventaries 50 Compensation of employees 5,400 Corparate profits 700 Durable goads 600 Expurts 100 Social Security taxes 360 Transfer payments 300 Fixed investment 950 Government 5pending 900 Imparts 150 Net interest 500 Nondurable goods 2,000 Persanal taxes 1,000 Rental income 200 Services 4,000\begin{array} { | l | r | } \hline \text { Indirect business taxes } & \$ 600 \\\hline \text { Depreciation } & 950 \\\hline \text { Change in business inventaries } & 50 \\\hline \text { Compensation of employees } & 5,400 \\\hline \text { Corparate profits } & 700 \\\hline \text { Durable goads } & 600 \\\hline \text { Expurts } & 100 \\\hline \text { Social Security taxes } & 360 \\\hline \text { Transfer payments } & 300 \\\hline \text { Fixed investment } & 950 \\\hline \text { Government 5pending } & 900 \\\hline \text { Imparts } & 150 \\\hline \text { Net interest } & 500 \\\hline \text { Nondurable goods } & 2,000 \\\hline \text { Persanal taxes } & 1,000 \\\hline \text { Rental income } & 200 \\\hline \text { Services } & 4,000 \\\hline\end{array}
-In Exhibit 11-8,compute national income (NI) .Which of the following is correct?


A) $7,400 billion.
B) $7,250 billion.
C) $8,150 billion.
D) $8,200 billion.
E) $8,350 billion.

Correct Answer:

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