1 / 10

GDP to PI

GDP to PI. GDP=C + Ig + G + Xn. C is usually 67-70% of GDP Xn is usually a negative number C is the key to growth. Going from GDP to PI numbers:. GDP minus Consumption of Fixed Capital (CFC or Depreciation) will equal: NDP (Net Domestic Product)

bruce-roberson
Download Presentation

GDP to PI

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. GDP to PI

  2. GDP=C + Ig + G + Xn • C is usually 67-70% of GDP • Xn is usually a negative number • C is the key to growth

  3. Going from GDP to PI numbers: • GDP minus Consumption of Fixed Capital (CFC or Depreciation) will equal: • NDP (Net Domestic Product) • NDP minus Indirect Business Taxes, minus “Net Foreign Factor Income” (if this is a negative number) will equal: • NI (National Income)

  4. NI minus social Security contributions (Payments), minus Corporate Income Taxes, minus “Undistributed Corporate Profits”, plus transfer payments received by citizens will equal: • PI (Personal Income) • PI minus Personal Taxes Paid equals:

  5. DI (Disposable Income) • DI minus Savings equals • C (Consumption)

  6. Notes : • Indirect Business Taxes: • Sales Taxes • Excise Taxes • Licenses

  7. Net Foreign Factor Income: • Money US citizens earn overseas and send back to the US versus money foreigners earn here and send back to their home countries (remittances)

  8. Undistributed corporate profits: • Total corporate profits minus corporate taxes paid and minus any money paid to stockholders in the form of dividend payments

  9. Transfer Payments: • Social Security Payments, Unemployment compensation payments, welfare payments, disability payments

  10. Where do credit card expenditures and payments fit in?????

More Related