ECON 112 Study Guide - Midterm Guide: National Bureau Of Economic Research, Real Interest Rate, Income Approach
Document Summary
National income (ni) = income received by individuals + income received by gov"t on production. Interest income: wages received by employers, rents c, proprietor"s income (income from owning a biz, corporate profits, dividends, gov"t, undistributed profits. Iv: taxes on other productions & imports. Net foreign factor income = income earned on american owned resources outside. Us income earned on foreign owned resources outside us. Included in gdp through income approach because it is not received as income by any group. Statistical discrepancy: difference estimated by nipa b/twn expenditure and income approach. Gdp = ni net foreign factor income + depreciation + stat. Ni = gdp expenditure method + nfi depreciation stat. Net domestic product (ndp) = gdp depreciation. Personal income: income received from both production of goods & nonproduction income. Nonproduction income = unearned income (social security, disability, unemployment) Disposable income: income available to households after paying taxes.
