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Questions tagged [national-income]

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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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1answer
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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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2answers
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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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1answer
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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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1answer
86 views

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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0answers
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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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2answers
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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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Government expenditure multiplier in a class divided society

Supposing that a society is divided between a rich class and a poor class. Also supposing that $0<k<1$ is the proportion of GDP going to poor class and $(1-k)$ of the GDP going to the richer ...
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1answer
23 views

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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Calculating equilibrium income of a three sector model

I need your help ....suppose the economy is like this... Transfer payment is 100 000, Investment 10 000 000 Government expenditure 50 000 000,MPt 0.3,MPC 0.9 Compute the equilibrium income
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1answer
439 views

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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28 views

Link between economic growth and income growth

We know that economic models such as AD-AS and the Keynesian model easily explain how economic growth leads to income growth. But how does one explain in layman's terms how economic growth (a nation ...
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1answer
237 views

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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1answer
32 views

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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2answers
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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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1answer
494 views

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?