Gross Domestic Product (GDP) = $13.0 trillion, consumption = $9.5 trillion, depreciation = $1.8 trillion, other business income adjustments less indirect business taxes = $0.2 trillion, and net U.S. income earned abroad = $0.1 trillion. Use this information to calculate national income (NI).

Question

Quizplus · Accepted Answer

National Income (NI) can be calculated by starting with GDP and then adjusting for depreciation (also known as capital consumption allowance), net income earned abroad, and other business income adjustments less indirect business taxes. NI = GDP - Depreciation + Net U.S. income earned abroad + Other business income adjustments less indirect business taxes. Plugging in the given values: NI = $13.0 trillion - $1.8 trillion + $0.1 trillion + $0.2 trillion = $11.5 trillion. The correct answer is D, but there seems to be a typo in the options where it should be trillion instead of billion.