Question
Solution
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 = 4000 + 0 - 210 - 500 = 3290
Personal Income = NI - corporate taxes - retained earnings - social security + transfer payments + net interest
PI = 3290 - 50 - 25 - 200 + 500 = 3515
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