RESUME "NATIONAL INCOME"

Meeting this time I will make a summary of national income. Please learn ya ....
A. Definition of National Income

National income is the value of production of goods and services produced by the State within a certain period.

B. Concepts of National Income 1. Gross Domestic Product (Gross Domestic Product = GDP)

GDP is the total value of final goods and services produced by an economy that dlam certain period is calculated based on market value.

2. Gross National Product (Gross National Product = GNP)

Gross National Product = Gross Domestic Product + Net Income of Foreign Affairs

3. Net National Product (Net National Product = NNP)

Net National Product = Gross National Product - Depreciation + Capital substitutes

4. Net National Income (Net National Income = NNI)

National Income = Net National Product, Net - Direct + tdak Tax Subsidies

5. Individual Income (Personal Income = PI)

Individual Income = National Income, Net + Transfer payment -  retained earnings + social security contributions tax liability

6. Disposable income / After Tax (Disposable Income)

Disposable Income = Personal Income - Income Tax

7. GRDP (Gross Regional Domestic Product)

GDP is the sum total of the gross added value created by the successful economic activities which are in a region during a specific time period.

C. National Income Calculation Method 1. Income Approach

National income is calculated by adding the income from the owners of production factors. Mathematically can be formulated as follows:

NI = YW + Yr + Yi + Yp

Description: NI = National Income Yw = Income from wages, salaries, and other pre-tax Yr = net income from rental Yi = Income from interest Yp = Revenue from corporate profits  
2. Production Approach

National income is calculated by summing the value of goods and jasayang produced by various sector in the economy.

3. Expenditure Approach

National income is calculated by summing all the expenses or spending levels of society .. systematically can be formulated as follows:

NI = C + I + G + (X - M)

Description: NI = National Income C = household consumption expenditure of individuals I = investment expenditure G = government consumption expenditure (X - M) = Net Exports 
To be continouse......