LECTURE 9.20 GDP

LECTURE 9.20 GDP - LECTURE 3 GDP Types of Income o(Gross...

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LECTURE 3: GDP 9/20/11 Types of Income o (Gross) – from all sources: salary, wages rent, interest, profit, transfer payments (social security, TANF, etc.) o Disposable Personal Income (Net) – amount left over after deducting personal taxes from personal income o Discretionary Income – money left over for consumers to spend on goods and services Revenue side (2010) o Individual tax payments 48% o Social insurance and retirement receipts 35% Surplus – when revenue exceeds expenditures Deficit – when government expenditures exceed revenues GDP leaves out o Underground economy (shadow/black economy) Pure tax evasion Don’t pay taxes Don’t let people know that you’re getting more income than your suppose to Irregular economy Hiring illegal immigrants Illegal economy Money laundering Drug trafficking Human trafficking Animal trafficking o These are produced but just don’t show up in the GDP Typical distribution of monthly net income
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LECTURE 9.20 GDP - LECTURE 3 GDP Types of Income o(Gross...

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