Question 1
Personal income is national income minus
◦ depreciation.
◦ net factor income to the rest of the world.
◦ the amount of national income not going to households.
◦ imports.
Question 2
If national income is $600 billion, personal income is $400 billion, personal taxes are $120 billion, then disposable income equals
◦ $480 billion.
◦ $320 billion.
◦ $280 billion.
◦ $80 billion.