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Refer to the Accompanying National Income Data (In Billions of
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Question 10

Multiple Choice

1 Consumption of Fixed Capital $4382 Taxes on Production and Imports 3263 Compensation of Employees 2,3474 Rents 145 Interest 2876 Proprietors’ Income 2427 Corporate Profits 2978 Personal Consumption Expenditures 2,5829 Gross Private Domestic Investment 66910 Government Purchases 81511 Net Exports 7812 Net Foreign Factor Income 4613 Statistical Discrepancy 50\begin{array} { | r | l | r | } \hline 1 & \text { Consumption of Fixed Capital } & \$ 438 \\\hline 2 & \text { Taxes on Production and Imports } & 326 \\\hline 3 & \text { Compensation of Employees } & 2,347 \\\hline 4 & \text { Rents } & 14 \\\hline 5 & \text { Interest } & 287 \\\hline 6 & \text { Proprietors' Income } & 242 \\\hline 7 & \text { Corporate Profits } & 297 \\\hline 8 & \text { Personal Consumption Expenditures } & 2,582 \\\hline 9 & \text { Gross Private Domestic Investment } & 669 \\\hline 10 & \text { Government Purchases } & 815 \\\hline 11 & \text { Net Exports } & - 78 \\\hline 12 & \text { Net Foreign Factor Income } & 46 \\\hline 13 & \text { Statistical Discrepancy } & 50 \\\hline\end{array} Refer to the accompanying national income data (in billions of dollars) . Which items need to be accounted for in going from national income to GDP?


A) 1, 12, and 13
B) 2, 11, and 12
C) 13 only
D) 1 and 2

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