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Concept in National Income Accounting
Concept in National Income Accounting
Income Approach
Product Approach
Personal income = Wages and salaries + Rent + Interest + Profit + Dividens + Transfer
payments + Interest on government loans + Interest on consumer
loans – Taxes on corporate profit – Undistributed corporate profit
(Retained earning) – EPF contributions
And,
Example:
The real per capita income for Malaysia for the years
2010 and 2011 are RM3369 and RM3461 respectively.
What is the rate of economic growth in 2011?