Principles of Macroeconomics Day 2: NIPA – National Income and Product Accounts Dr. Andrew L. H. Parkes “A Macroeconomic Understanding for use in Business” April 1, 2010 Principles of Macroeconomics, Day 3 卜安吉
NIPA Equations n NIPA – National Income and Product Accounts n GDP = C + I + G + NX n GNP = GDP – Plus: Income receipts from the rest of the world – Less: Income payments to the rest of the world April 1, 2010 Principles of Macroeconomics, Day 3 2
National Income n Wages and Salaries (we include Proprietor’s Income here) n Rental Income n Interest n Profit n Business taxes are also a significant part of National Income. April 1, 2010 Principles of Macroeconomics, Day 3 3
GNP to National Income All from the BEA’s Data http: //www. bea. gov/ Gross National Product - CCA: Capital Consumption Allowance (Depreciation) - Statistical discrepancy = National Income April 1, 2010 Principles of Macroeconomics, Day 3 4
Personal Income Finally, what are the components of Personal Income (first notice that we equate National Income with Personal Income, a small difference): 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!! April 1, 2010 Principles of Macroeconomics, Day 3 5