Business Economics I NIPA – National Income and Product Accounts

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Business Economics I NIPA – National Income and Product Accounts Dr. Andrew L. H. Parkes “A Macroeconomic Understanding for use in Business” 卜安吉

NIPA Equations NIPA – National Income and Product Accounts GDP = C + I + G + NX GNP = GDP Plus: Income receipts from the rest of the world Less: Income payments to the rest of the world October 17, 2013

National Income Wages and Salaries (we include Proprietor’s Income here) Rental Income Interest Profit Business taxes are also a significant part of National Income. October 17, 2013

GNP to National Income Gross National Product All from the BEA’s Data http://www.bea.gov/ Gross National Product - CCA: Capital Consumption Allowance (Depreciation) - Statistical discrepancy = National Income October 17, 2013

Personal Income - Personal taxes (and Social Security Taxes) Finally, what are the components of Personal Income (first notice that we equate National Income with Personal Income, a small difference): Personal Income - Personal taxes (and Social Security Taxes) = Disposable Personal Income (DPI) = Consumption + Savings Note that consumption is called “personal outlays” in the NIPA documents!! October 17, 2013