ECON 102 Lecture Notes - Lecture 3: Investment Goods, Gdp Deflator
Document Summary
Def: gross national product (gnp) total income earned by a nation"s permanent residents. American citizens income earned abroad is included. Gnp excludes income that foreigners earn in the u. s. Def: net national product (nnp) total income of a nation"s residents (gnp) minus losses from depreciation (wear and tear of economy"s stock of equipment and structures) Def: national income total income earned by a nation"s residents in the production of goods and services. National income differs from nnp by excluding indirect business taxes and including business subsidies. Nnp and national income also differ due to statistical discrepancies. Def: personal income income that households and non-corporation businesses receive. Def: disposable personal income income that households and non-corporation businesses have remaining after taxes and other obligations due to the government. Def: consumption the spending by households on goods and services with the exception of purchases of new houses.
