Questions tagged [national-income]

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How can I calculate the real government income from expanding the monetary base?

Some governments can pay for expenditures by increasing the monetary supply. How can I calculate the income as a percentage of GDP for such an increase? I am trying to do that for Argentina.
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Interest on consumption should be included or not in national income

Why interest on loan taken for consumption purpose is not included in national income why it is not considered as a service produced instead of transfer payment ?
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Isn't Net Domestic Product(NDP) a better metric than Gross Domestic Product(GDP)?

As per my understand we deduct depreciation from GDP, since capital goods were already counted in their year of production, we subtract depreciation so as to prevent double counting. So why is GDP a ...
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Modified GDP measures

Just wondered if anyone was aware of any other modified GDP measures which take account of globalisation? The point here is that when multinationals register profits in a country such as Ireland, it ...
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Items not to be included in national income [duplicate]

Why business to business transaction are included in intermediate consumption for example amount spent by business firm on hiring services of a lawyer why it will not be included in national income?
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National income intermediate consumption

My economics teacher said that amount paid by a business firm to a lawyer for hiring his services is intermediate consumption hence it should not be included but my question is why it is intermediate ...
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Multivariate implicit differentiation (Samuelson, 1948)

I am studying "The Simple Mathematics of Income Determination", by Paul Samuelson (from book is called "Macroeconomia (artigos selecionados)", by APEC-CAEN. It is the 1st chapter ...
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Why does HDI use log-transformed data for income index?

For calculation of HDI, the Income Index used is $\mathrm{I_{income} = \dfrac{ln(Income) - ln(min Income)}{ln(max Income) - ln(min Income)}}$. Why is the log transformed income used here? World Bank ...
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Why doesn't national savings, in aggregate, always equal to zero in monetary terms?

Referring to this question and this one Imagine you had a closed economy with two people and they both started off with $100 dollars. How would net savings in aggregate ever not be zero? Anything ...
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Multiplier effect and GDP

The fundamental national income accounting identity is: $Y = C + I + G + X - M$. The multiplier effect tells us that an autonomous injection into the economy will result in a multiplied increase in ...
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How do you perform economic analysis of a country? [closed]

I have no academic background in economics except for one class I took in engineering school. In this recent crisis of coronavirus, I would like to know how my country is doing overall and how deep in ...
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Does "I" in Y = C + I + G + X - IM refer to the domestic investment?

We know the national income identity: $Y = C + I + G + X - IM$. From many resourses, $I$ refers to domestic investment. For example in this link: https://opentextbc.ca/principlesofeconomics/chapter/...
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What will be the additional investment?

I recently encountered upon this question: Suppose, in an economy,autonomous consumption is Rs 100 crore and autonomous investment is Rs 60 crore. Imagine that in this economy,with every increase in ...
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Does GDP Income Approach hold?

Let me introduce my question with an example. There is a company producing cars. $20$ cars are produced, with a value market of $20000u$. $\textrm{GDP} = 20\cdot20000u = 400000u$. Assume that the ...
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Does creating more jobs actually help the economy as a whole?

So I recently came across an interesting point on why NASA isn't a waste of money, and it basically stated how NASA supports thousands of jobs, creates community events, and uses a part of its budget ...
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Why growth of national income in current prices during inflation not measured in poor sections and poverty alleviation programs?

Here 1) dwindles means reduce, smaller. Here is my doubt: If inflation fluctuates how can we use the word 'dwindles', what it means here? 2) Why the growth rate during inflation not measured in poor ...
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Can't we measure the growth in the income levels of poor?

Inflation has been a challenging aspect of policymaking. In such situations growth in the income levels of the population living below the poverty level can never be measured accurately (due to ...
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Consumer's side and producer's side

GDP gives the picture from the consumers’ side, while GVA gives the picture from the producers’ side. By definitions of both GDP and GVA "the amount of goods and services PRODUCED in an economy in a ...
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How to Find Real Disposable Income for Iran?

I'm doing a project for my macro course, and I'm trying to find real disposable income for Iran over a 25 year period. In my course Disposable income, $Y_d = Y - T$, where $Y$ is output (income) and $...
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Why does Denmark have such a huge disparity between its income and wealth Gini coefficients?

(After-transfer) income inequality and wealth inequality are obviously not the same thing, but I would intuitively expect that, all else equal, they would be reasonably well correlated across ...
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please help describe a) what exactly is the Paradox of Profits , b) what is the argument of these papers exactly

here are 3 papers that discuss it. it seems to me that the paradox is that, supposing a closed economy has money M raised through bank loans, then, while that economy can create goods and services and ...
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World Inequality Database: Top 10% Income Share U.S. vs. Top 10% Average Income

I want to use the U.S. data from the World Inequality Database for a VAR analysis. However, I am confused as to why the series for the top 10% income share only runs back to 1962, while the series for ...
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Change in inventory

Inventory change=last period's ending inventory- the current period's ending inventory. Change in inventory= production of the firm during the year- sale of the firm during the year No doubt in (1) ...
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Inventory based question [closed]

"If a firm produces 1000 shirts (finished products), expecting to keep an inventory of 100 shirts at the end of the year." Here Why a firm keep an inventory of 100 shirts ? What is the need of it? ...
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National income referred as GDP?

National Income is the total value of all services and goods that are produced within a country and the income that comes from abroad for a particular period, normally one year. Gross Domestic ...
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How is Aggregate Supply(Willing) equal to National Income(Actual)?

Acc. to definition of Aggregate Supply It is the total value of final goods and services that the producers are willing to supply in country . Definition of National Income It is the value of ...
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How can Factor Income paid to abroad be negative?

There was a question in my book in which the factor income paid to abroad was given as negative . I guess here negative means that we are not paying but receiving from them but how can it happen that ...
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Can Autonomous Consumption be Greater than Income of individual?

Autonomous consumption is done either through past savings or by borrowing money or selling asset to have minimum consumption in order to survive. So can autonomous consumption be greater than our ...
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Why don't we draw National Income Curve(45 deg. line) simultaneously with graph for Saving Function?

When we talk about Consumption Function , we draw the 45 degree line of Income or Aggregate supply curve simultaneously. But while graphing saving function , we don't show Income curve (45 deg. line) ...
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Does National Savings equal zero in a closed economy? Please give an economic intuition

Context: $Y -(C+I+G) = X - M$ In a closed economy, $(X-M) = 0$ Notations Y --> Income/Output C,I,G --> Consumption, Investment and Government expenditure respectively. X --> Exports M --> ...
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Marginal propensity to consume and multiplier effect

Recently I had a conversation with a certain person (call her X) about the marginal propensity to consume (and about the multiplier effect). With marginal propensity to consume I mean $c_1$ as a part ...
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Why Does National Data Usually Cite Average Income Rather than Median Income?

When I try to look into standard of living in a given country, I try to find median income figures. I can almost never find them. Instead, all of the data I can find is about average income, GDP per ...
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What will be the effect on velocity of money when demand for real money increases?

Suppose that a change in government regulations allows banks to start paying interest on checking accounts. The money stock is the sum of currency and demand deposits, including checking accounts. (...
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Does GNI change once it has been published?

From what I understand, GNI is published for the last year once the year has ended I am trying to have a look at the GNI for Korea for the past couple of years The official GNI is published by ...
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Why real wage equals marginal product of labor when return to scale is constant?

I can understand that real wage will equal MPL(marginal product of labor) when MPL is diminishing, because firms will employ more labor until MPL falls to real wage. While, if MPL is constant, ...
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How GDP by expenditure and GDP by income method are same in this case?

Suppose I earn factor wage ₹1000 in the year 2018 and I pay a tax of ₹100 to the government. So GDP by income method is ₹1000 as we ignore transfer payments. Now if I spent all my 900 on domestic ...
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GDP Identity:Why does $\text{C+S+T = C+I+G+(X-M)}$?

$$\text{C+S+T = Y = C+I+G+(X-M)}$$ where: $\text{Y}$ is GDP $\text{C}$ is Private consumption $\text{S}$ is Private savings $\text{T}$ is net taxes $\text{I}$ is investment $\text{G}$ is ...
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GDP per capita growth of Asia [closed]

This graph shows that South Korea, Malaysia, China, India, Pakistan, Bangladesh started around the 1970s. Income of South Koreans rocketed while Malaysia and China seem like they couldn't live up to ...
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Estimating national intangible wealth

I seem to recall reading about the following research regarding "national intangible wealth" (IIRC): For each country, compute the GDP. Convert the GDP to "total national capital" using an interest ...
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Is the BEA double counting benefits in Personal Income?

The BEA (US Bureau of Economic Analysis) that produces the GDP and GDI also prepares a summary of Personal Income for the nation. In that it includes employer contributions for both private pensions ...
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Is unemployment benefit part of national income measurement?

Since unemployment benefit is a form of government spending, which is a component of aggregate expenditure, then shouldn't unemployment benefits be part of national income measurement?
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