Transcript NIPA PPT

Principles of
Macroeconomics
Day 11: NIPA – National Income and Product Accounts
Dr. Andrew L. H. Parkes
“A Macroeconomic Understanding for use in Business”
April 28, 2013
BECO II Day 11
卜安吉
NIPA Equations

NIPA – National Income and Product
Accounts
GDP = C + I + G + NX
 GNP = GDP

– Plus: Income receipts from the rest of the world
– Less: Income payments to the rest of the world
April 28, 2013
BECO II Day 11
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National Income

Wages and Salaries (we include Proprietor’s Income here)

Rental Income

Interest

Profit
– Business taxes are also a significant part of
National Income.
April 28, 2013
BECO II Day 11
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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 28, 2013
BECO II Day 11
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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 28, 2013
BECO II Day 11
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