# From the following table, compute the National Income. Economic Data for PEMBROKIA (Billions of...

## Question:

From the following table, compute the National Income.

 Economic Data for PEMBROKIA (Billions of Dollars) Government purchases 200 Net exports 7 Consumption spending 540 Personal taxes 94 Investment spending 175 Depreciation 52 Transfer payments 68 Net nonbusiness interest income 59 Net foreign factor income 5 Wages and salaries 500 Corporate retained earnings 45 Rental income 35 Indirect business taxes 50 Interest income 140 Social Security contributions 58

## Net Exports:

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.

Expenditure method

National income = Consumption + Investment + Government expenditure + Net exports

National income = 540 + 175 + 200 + 7

National income = 922

Therefore, the national income is 922.