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Suppose that GDP is $20 trillion, transfer payments by the government to households are $5 trillion, interest payments on government securities to households are $2 trillion, retained earnings are $1 trillion, and income tax is $10 trillion.

Calculate the personal income and disposable personal income.

A. Personal income is $27 trillion and disposable personal income is $16 trillion.
B. Personal income is $27 trillion and disposable personal income is $17 trillion.
C. Personal income is $26 trillion and disposable personal income is $16 trillion.
D. Personal income is $26 trillion and disposable personal income is $17 trillion.

Answer :

Final answer:

The subject of the question is Social Studies and it is suitable for High School level. The correct combination from the given options is 27:16.

Explanation:

The subject of this question is Social Studies and it is suitable for High School level.

In this question, we are provided with information about the GDP, transfer payments, interest payments on government securities, retained earnings, income tax, personal income, and disposable personal income. We need to determine the correct combination from the given options.

The correct combination is 27:16, which means the GDP is $20 trillion, transfer payments are $5 trillion, interest payments are $2 trillion, retained earnings are $1 trillion, income tax is $10 trillion, personal income is $26 trillion, and disposable personal income is $16 trillion.

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