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

2. 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

3. 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

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

5. 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