From the following table, compute the National Income.
|Economic Data for PEMBROKIA|
|(Billions of Dollars)|
|Net nonbusiness interest income||59|
|Net foreign factor income||5|
|Wages and salaries||500|
|Corporate retained earnings||45|
|Indirect business taxes||50|
|Social Security contributions||58|
Net exports is the difference between exports and imports. If exports are greater than imports then net exports are positive. In the case of an increase in exports more than increase in imports then net exports are negative.
Answer and Explanation:
National income = Consumption + Investment + Government expenditure + Net exports
National income = 540 + 175 + 200 + 7
National income = 922
Therefore, the national income is 922.
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from Economics 102: MacroeconomicsChapter 4 / Lesson 3