ECON UN1105 Study Guide - Final Guide: Gross National Product, Root Mean Square
Document Summary
Other measures of total production and total income. National income accounting: the methods that the bea use to track total production and total income in the economy. Us: >location doesn"t matter, the country that owns the rm is what matters, in the us, gnp gdp, they are almost the same number. Personal income income received by households: to calculate personal income, subtract the earnings that corporations retain rather than pay to shareholders (in the form of dividends), payments that households receive from the government is included in personal income. These payments are considered a form of transfer payments, or interest on government bonds. Disposable personal income: disposable personal income = personal income - personal tax payments, best measure of the income that households actually have available to spend. Total income is divided in 5 categories: 1. Gross domestic income: gdp calculated as the sum of income payments to households.