Table 52 National Income Accounts (Dollar Figures Are in Billions)

question 13

Multiple Choice

Table 5.2 National Income Accounts (dollar figures are in billions)
$\begin{array}{|l|r|}\hline \text { Expenditures for consumer goods and services } & \$ 2,850 \\\hline \text { Exports } & \$ 300\\\hline \text { Government purchases of goods and services } & \$810 \\\hline \text { Social Security taxes } & \$ 295 \\\hline\text { Net investment } & \$510 \\\hline\text { Indirect business taxes } & \$ 445 \\\hline\text { Imports } & \$450 \\\hline \text { Gross investment } & \$700 \\\hline \text { Corporate income taxes } & \$ 190\\\hline \text { Personal incometaxes } & \$ 875 \\\hline \text { Corporateretained earnings } & \$ 210 \\\hline\text { Net foreign factor income } & \$ 0 \\\hline \text { Govermment transfer payments to households } & \$780 \\\hline \text { Net interest payments to households } & \$ 20 \\\hline\end{array}$

On the basis of Table 5.2,GDP is

• A)$2,090 billion.
• B)$4,210 billion.
• C)$4,400 billion.
• D)$4,020 billion.

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Definitions:

Balance Constraint

A condition in mathematical models that ensures the total input into the system equals the total output, maintaining equilibrium.

Production

The process of creating, manufacturing, or producing goods and services, often involving a series of operations or stages.

Inventory

The total amount of goods and materials held in stock by a company, warehouse, or store.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices.