Monday, February 13, 2017

February 2, 2017

Calculating Income approach

National income
1st formula
Compensation of employees + Rental Income + Interest Income + Proprietress Income+ Corporate Profit

2nd formula 
GDP- Indirect business taxes - Depreciation- net foreign factor payments


Disposable Personal Income = National Income - Personal household taxes + government transfer payments

Budget = Government purchases of goods and services = government transfer payments - government tax and fee collection
 Positive answer means deficit
Negative answer mean surplus

Trade = Exports minus Imports
Positive answer means surplus
Negative answer means deficit

Net Domestic Product equals GDP- Depreciation
Net National Product equals GNP- Depreciation
Net Investment plus Depreciation equals Gross investment 
GNP = GDP + foreign factor payments




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