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Principles of Macroeconomics Day 2: NIPA – National Income and Product Accounts

Principles of Macroeconomics Day 2: NIPA – National Income and Product Accounts. Dr. Andrew L. H. Parkes “A Macroeconomic Understanding for use in Business”. 卜安吉. NIPA Equations. NIPA – National Income and Product Accounts GDP = C + I + G + NX GNP = GDP

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Principles of Macroeconomics Day 2: NIPA – National Income and Product Accounts

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  1. Principles of MacroeconomicsDay 2: 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 Principles of Macroeconomics, Day 3

  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. Principles of Macroeconomics, Day 3

  4. GNP to National Income Gross National Product - CCA: Capital Consumption Allowance (Depreciation) - Statistical discrepancy = National Income All from the BEA’s Data http://www.bea.gov/ Principles of Macroeconomics, Day 3

  5. Personal Income 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!! Finally, what are the components of Personal Income (first notice that we equate National Income with Personal Income, a small difference): Principles of Macroeconomics, Day 3

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