National Disposable Income

Calculate Personal Income, Disposable Income, National

Income, and Net Domestic Product from the following;
Rs.
GDP 4000
Transfer Payments 500
Corporate Inc. Taxes 50
Social Sec. Contributions 200
Indirect business Taxes 210
Personal Taxes 250
Undistributed Corp. Profit 25
Depreciation 500
Net Income Earned Abroad 0
 Gross National Disposable Income

Gross National Disposable Income may be derived from

gross national income by adding all current transfers in
cash or in kind receivable by resident institutional units
from non-resident units and subtracting all current transfers
in cash or in kind payable by resident institutional units

Formula for Personal Income:

PI = National income + Transfer Payments - Corporate
retained earnings, income taxes, social security taxes
Disposable personal income
= Personal Income - Personal Taxes
DPI = PI - Personal Taxes
Disposable Income= Gross Income - Taxes + Transfer
Payments
DI = Y - T + TP
 NI = GDP + NR - IBT - CC
NI = National income
NR = + or - Net income from assets abroad (net income
receipts)
IBT = Indirect business taxes
CC = Depreciation
NI = 4'000 + 0 - 210 - 500 = 3'290
NDP = GDP - CC
NDP = Net domestic product
NDP = 4'000 - 500 = 3'500
Personal Income = NI - corporate taxes - retained earnings -
social security + transfer payments
+ net interest
PI = 3'290 - 50 - 25 - 200 + 500 = 3'515
Disposable Income = PI - Personal taxes
DI = 3'515 - 250 = 3'265