Assume personal income was $28 million last year. Personal outlays were $20 million and personal current taxes were $5 million.
a. What was the amount of disposable personal income last year?
3 Million???
To calculate the amount of disposable personal income last year, we need to subtract personal current taxes from personal income.
Disposable Personal Income = Personal Income - Personal Current Taxes
In this case, the personal income was $28 million and the personal current taxes were $5 million.
Disposable Personal Income = $28 million - $5 million
Disposable Personal Income = $23 million
Therefore, the amount of disposable personal income last year was $23 million.