One day Barry the Barber, Inc., collects $400 for haircuts. Over this day, his equipment depreciates in value by $50. Of the remaining $350, Barry sends $30 to the government in sales taxes, takes home $220 in wages, and retains $100 in his business to add new equipment in the future. From the $220 that Barry takes home, he pays $70 in income taxes. Based on this information, compute Barrys contribution to the following measures of income:a. gross domestic productb. net national productc. national incomed. personal incomee. disposable personal income
a. Gross domestic product= $400(collected from haircuts) b. Net national product= Gross domestic product- Depreciation = $400- $50= $350 c. National income= Net natioanl product- Sales taxes = $350- $30= $320 d….
onal income= National income- Retained earnings = $320-$100= $220 e. Disposable personal income= Personal income- Income taxes = $220-$70 = $150