Table 19-32 -Refer to Table 19-32

question 168

Essay

Table 19-32
$$\begin{array} { | l | c | } \hline & \begin{array} { c } \text { Billions of } \\\text { Dollars }\end{array} \\\hline \text { National income } & \$ 11,200 \\\hline \text { Retained earnings } & 560 \\\hline \text { Depreciation } & 700 \\\hline \text { Interest on government bonds } & 300 \\\hline \text { Transfer payments } & 2,200 \\\hline \text { Personal taxes } & 1,400 \\\hline\end{array}$$
-Refer to Table 19-32.The table above represents hypothetical data from the National Income Accounts for 2015.Use the data to calculate personal income and disposable income.

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Definitions:

Trade-Off

An exchange where getting something of value requires giving up something else of value, typically used in the context of making decisions with limited resources.

Short Run

A period during which at least one of a firm's inputs is fixed and cannot be changed.

Fed's Policy

The set of monetary policy guidelines and actions taken by the Federal Reserve, the central banking system of the United States, to control the money supply and achieve macroeconomic goals.

High Inflation

A situation characterized by an excessive and accelerating increase in the prices of goods and services across the economy.