april 28, 2013beco ii day 11 principles of macroeconomics day 11: nipa national income and product...
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April 28, 2013BECO II Day 113 National Income Wages and Salaries (we include Proprietor’s Income here) Wages and Salaries (we include Proprietor’s Income here) Rental Income Rental Income Interest Interest Profit Profit –Business taxes are also a significant part of National Income.TRANSCRIPT
April 28, 2013April 28, 2013 BECO II Day 11BECO II Day 11
Principles of Principles of MacroeconomicsMacroeconomics
Day 11: NIPA – National Income and Product AccountsDay 11: NIPA – National Income and Product Accounts
Dr. Andrew L. H. ParkesDr. Andrew L. H. Parkes““A Macroeconomic Understanding for use in A Macroeconomic Understanding for use in
Business”Business”
卜安吉卜安吉
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NIPA EquationsNIPA Equations
NIPA NIPA –– National Income and Product National Income and Product AccountsAccounts
GDP = C + I + G + NXGDP = C + I + G + NX GNP = GDP GNP = GDP
– Plus: Income receipts from the rest of the Plus: Income receipts from the rest of the worldworld
– Less: Income payments to the rest of the worldLess: Income payments to the rest of the world
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National IncomeNational Income Wages and Salaries Wages and Salaries (we include Proprietor’s Income here)(we include Proprietor’s Income here)
Rental IncomeRental Income
InterestInterest
ProfitProfit– Business taxesBusiness taxes are also a significant part of are also a significant part of
National Income. National Income.
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GNP to National IncomeGNP to National Income
Gross National ProductGross National Product- CCA: Capital Consumption Allowance- CCA: Capital Consumption Allowance(Depreciation)(Depreciation)- Statistical discrepancy- Statistical discrepancy
= = National IncomeNational Income
All from the BEA’s Data http://www.bea.gov/
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Personal IncomePersonal Income
Personal IncomePersonal Income- - Personal taxes (and Social Security Taxes)Personal taxes (and Social Security Taxes)== Disposable Personal Income (DPI)Disposable Personal Income (DPI) == Consumption + SavingsConsumption + Savings
Note that consumption is called “personal outlays” in the NIPA documents.Note that consumption is called “personal outlays” in the NIPA documents.
Finally, what are the components of Personal Income (first notice that we equate National Income with Personal Income, a small difference):