Question

    Calculate Disposable income if, Consumption (C) = 200,

    Investment (I) = 50, Government purchases (G) = 70, Government transfer payments (TP) = 150, Taxes (T) = 75, Exports (X) = 10, Imports (M) = 5
    A 425 Correct Answer Incorrect Answer
    B 365 Correct Answer Incorrect Answer
    C 300 Correct Answer Incorrect Answer
    D 400 Correct Answer Incorrect Answer
    E 395 Correct Answer Incorrect Answer

    Solution

    Y = C + I + G + NX Y = 200+50+70+10-5 = 325 Yd = 325 – T + TP = 325 – 75 + 150 = 400

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