Difference between disposable income and national income
Answers
National income is the total value of the total output of a country, it includes all goods and services produced in one year. Disposable income is the amount available to a household for spending, investing, and saving after paying income tax.
Answer:
Explanation:
Disposable income is the total amount of money that households used to spend on goods and services and saving after paying income taxes.
It is also known as a Disposable personal income.
It is an important indicator to measure the overall economy.
It is a net amount of a household or an individual available to spend on needs, to invest, save after paying income taxes.
National income means the total value of the total output of a nation, it includes all goods and services produced over a period of one year.
national disposable income is calculated by adding the difference between social transfers in kind receivable by resident institutional units from non-resident units and social transfers in kind payable by resident institutional units to non-resident units to national disposable income.