Question
Calculate Personal Income:
cellspacing="0" cellpadding="0"> GDP 3000 Transfer Payments 500 Corporate income taxes 50 Indirect business taxes 210 Personal taxes 250 Undistributed corp profit 25 Depreciation 500Solution
NI = GDP + NR - IBT - CC NI = National income NR = + or - Net income from assets abroad (net income receipts) IBT = Indirect business taxes CC = Depreciation NI = 3000 + 0 - 210 - 500 = 2290 Personal Income = NI - corporate taxes - retained earnings + transfer payments PI = 2290 - 50 - 25 + 500 = 2715
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