Table 12-29 -Refer to Table 12-29

question 65

Multiple Choice

Table 12-29
$\begin{array}{|l|c|}\hline & \begin{array}{c}\text { Billions of } \\\text { Dollars }\end{array} \\\hline \text { GDP } & \$ 3,250 \\\hline \text { Depreciation } & 300 \\\hline \text { Retained earnings } & 1,000 \\\hline \text { Personal tax payments } & 500 \\\hline \text { Transfer payments } & 80 \\\hline\end{array}$
-Refer to Table 12-29.Based on the table above,what is personal income for this economy?

• A) $1,950 billion
• B) $2,030 billion
• C) $2,450 billion
• D) $5,130 billion

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Definitions:

Dollar Prices

The price of a good or service expressed in units of the U.S. dollar.

Relative Prices

The price of one good or service compared to another, typically influencing consumer choice and resource allocation.

Nominal Variables

Variables measured in monetary terms and not adjusted for inflation, representing prices or values at the time of transaction.

Monetary Neutrality

The economic theory that changes in the money supply only affect nominal variables and have no long-term effects on real variables like output.