Measuring Total Output and Income

6.2 Measuring Total Income

TRY IT!

The following income data refer to the same economy for which you had output data in the first part of the previous Try It! Compute GDI from the data below and confirm that your result equals the GDP figure you computed in the previous Try It! Assume that GDP = GNP for this problem (that is, assume all factor incomes are earned and paid in the domestic economy).

Employee compensation $700
Social Security payments to households 40
Welfare payments 100
Profits 200
Rental income 50
Net interest 25
Depreciation 50
Indirect taxes 175