Of unincorporated businesses selfemployed gustavo

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: es + corporate profits + interest + rents + net income of unincorporated businesses self'employed' © Gustavo Indart Slide 17 Personal Income From Net Domestic Income we can obtain Personal Income Personal Income is the income received by individuals Therefore, to get to Personal Income we have to subtract corporate profits from Net Domestic Income and add dividends, government transfer payments, and interest on government debt Corporate profits = Corporate income taxes + Undistributed profits + Dividends Transfers are payments that do not arise out of current productive activity, that is, they are not payments for the service of a factor of production © Gustavo Indart Slide 18 Personal Disposable Income Personal Disposable Income is the amount of income available for consumption To obtain Personal Disposable Income we must subtract Personal Income Taxes from Personal Income Not all Personal Disposable Income is spent on personal consumption – a fraction is saved Therefore, Personal Disposable Income = Personal Consumption Expenditure + Personal Saving © Gustavo Indart Slide 19 Summary of National Account Definitions GDP = C + I + G + NX Net Domestic Product (NDP) = GDP depreciation Net Domestic Income (NDI) = GDP depreciation indirect taxes Net Domestic Income (NDI) = wages & salaries + corporate profits + interest income + rental income + net income of unincorporated businesses © Gustavo Indart Slide 20 Summary of National Account Definitions (cont’d) Personal Income (PI) = NDI corporate profits + dividends + government transfers to individuals + interest on government debt Where Corporate Profits = dividends + undistributed profits + corporate taxes Personal Disposable Income (YD) = PI personal income taxes Personal Disposable Income (YD) = consumption + savings © Gustavo Indart Slide 21 Gross National Product easy'to'find'job? GDPE'value'of'produc9on'located'in'Canada,' no'maFer'who'receives'the'income GNPE'income'receive'by'Canadian'residence'no' maFer'where'it'occurs Gross Domestic Product (GDP) measures production within Canada using both Canadian and non resident factors of product...
View Full Document

Ask a homework question - tutors are online