Answer:
The selected country is the United States.
In 2019, the US nominal GDP was $21.43 trillion.
And the 2019 US real GDP, based on 2012 dollars, was $19,01 trillion.
A decrease in taxes would raise both real and nominal GDP. This is because households and firms would have more available income to either spend or save.
An increase in interest rates would decrease the rate of growth of both real GDP and nominal GDP. This is because higher interests rates make investment more expensive, leading to less private and public investment, reducing the components I and G of the GDP calculation (under the expenditure approach).
State the relationship between GDP, net domestic product (NDP), national income (NI), personal income (PI), and disposable income (DI).
Net domestic product is the same as GDP minus depreciation of capital goods.
National Income (NI), or Gross National Income (GNI) is all the income received by a country's nationals regardless of where they live or work. For example, the salary of an American living in France is not a part of US GDP, but it is part of U NI.
Personal income refers to the income earned by households and firms, and therefore, it is one of the components of GDP.
And disposable income, is the income available to households and firms, after paying taxes and debt interest.
