3. The income account for the US nonfinancial corporate sector for 2022 looked roughly like this: Flow $ billions Gross value added 13,300 Consumption of fixed capital (depreciation) 2,000 Net value added 11,300 Compensation of employees 7,600 Taxes on production 1,100 Operating surplus 2,600 Interest 300 Distributed income of corporations (dividends) 1,200 Net income 1,100 Taxes on corporate income 400 Net saving 700 Investment Intellectual property 1,000 Structures 500 Equipment 900 Inventories 100

(a) Which of these items are counted as income for purposes of GDP? Which are counted as expenditure for purposes of GDP?

(b) Until about a decade ago, intellectual property expenditures were counted as intermediate inputs. Suppose we returned to that old accounting convention - what other entires on the table would we have to change, and by how much? NOTE: This question is not asking about anything that might change in the real world. It is a question about different ways of describing the same money payments.

(c) Given the items in the table, what can we say about the sectoral balance of the corporate sector? That is, what was the net lending or borrowing in financial markets by corporations in the aggregate?