To get personal income from national income, one must:
a. subtract out retained earnings, Social Security taxes, and transfer payments, and add in corporate business taxes.
b. subtract corporate profits and Social Security taxes, and add in transfer payments and other income.
c. subtract retained earnings, corporate business taxes, and transfer payments, and add in Social Security taxes.
d. subtract out corporate business taxes, Social Security taxes and transfer payments, and add in retained earnings.
Question 2
In the intermediate range of the aggregate supply curve, if government spending increases caused the aggregate demand curve to shift outwards, which of the following ismostlikely to occur?
a. The price level and real GDP will both rise.
b. The price level will not change, but real GDP will increase.
c. The price level will rise, but real GDP will not change.
d. Both the price level and real GDP will not change.
