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Answer :
Final answer:
Disposable income is the income that individuals have left over after paying taxes and receiving transfers. In this case, the income is 10 trillion dollars, the taxes are 3 trillion dollars, and the transfers are 2 trillion dollars. The disposable income in this scenario is $5 trillion.
Explanation:
Disposable income is the income that individuals have left over after paying taxes and receiving transfers. In this case, the income is 10 trillion dollars, the taxes are 3 trillion dollars, and the transfers are 2 trillion dollars. To calculate disposable income, we subtract taxes and transfers from income:
Disposable income = Income - Taxes - Transfers = 10 trillion - 3 trillion - 2 trillion = 5 trillion dollars
Therefore, the disposable income in this scenario is $5 trillion.
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