Disposable Income

Disposable Income Second important concept asks, How many dollars per year do households actually have available to spend? The concept of disposable personal income (usually called disposable income; or DI) answers this question. To get disposable income, you...

National Income

National Income To help us understand the division of total income among the different factors of production, we construct data on national income (XI). NI represents the total incomes received by labor, capital, and land. It-is constructed by subtracting depreciation...

From GDP to Disposable Income

From GDP to Disposable Income The basic “GDP accounts are of interest not only for themselves but also because of their importance for understanding how .consumers and businesses behave. Some further distinctions will help illuminate the way the nation’s...

flow of Cost Approach

flow of Cost Approach Now turn to the right-hand side of the table, which gives the lower-loop, flow-ofcost approach. Here we have all net costs of production plus taxes and depreciation. Wages and other employee supplements include all take-home pay, fringe benefits,...

Flow-of-Product Approach.

Flow-of-Product Approach. Look first at the left side of the table. It gives’ the upper loop. flow of product approach to GDP. Each of the four major components appears there, along with the production in each component for 1999. Of these, C and G and their...