National Income Accounting: Disposable Income
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Questions and Answers

What is the term for the amount of money that an individual or household has to spend or save after income taxes have been deducted?

  • Personal Income
  • National Income
  • Disposable Income (correct)
  • Gross National Product
  • Which National Income Accounting method adds up the pretax income generated by individuals and companies in the economy?

  • Product Method
  • Value-Added Method
  • Income Method (correct)
  • Expenditure Method
  • What is the name of the method that measures national income by adding up the expenditures made by individuals, companies, and the government?

  • Expenditure Method (correct)
  • Income Method
  • Product Method
  • Value-Added Method
  • Which of the following is a key parameter in determining consumer spending?

    <p>Disposable Income</p> Signup and view all the answers

    What is the name of the method that measures national income by adding up the net value added to the product at every stage of production?

    <p>Product Method</p> Signup and view all the answers

    What is the purpose of national income accounting statistics?

    <p>To measure the aggregate input and output of an economy</p> Signup and view all the answers

    What is the primary focus of national income accounting?

    <p>To measure the health of an economy, projected growth, and economic activity</p> Signup and view all the answers

    What is the formula for national income accounting equation?

    <p>Y=C+I+G+(X–M)</p> Signup and view all the answers

    What does Gross Domestic Product (GDP) primarily measure?

    <p>The overall health of the economy</p> Signup and view all the answers

    Which of the following metrics is NOT determined by national income accounting?

    <p>Unemployment Rate</p> Signup and view all the answers

    What is the limitation of Gross Domestic Product (GDP) as a measure of the economy?

    <p>It can vary by political definition</p> Signup and view all the answers

    Which of the following is an important metric determined by national income accounting?

    <p>Both A and B</p> Signup and view all the answers

    What does national income accounting provide information on?

    <p>Trend of economic activity level</p> Signup and view all the answers

    What can central banks use national income accounting statistics for?

    <p>To vary the rate of interest</p> Signup and view all the answers

    What does national income accounting data show?

    <p>Contribution of different sectors to economic growth</p> Signup and view all the answers

    What can the government use national income accounting data for?

    <p>To frame or modify tax rates</p> Signup and view all the answers

    What can national income accounting data help explain?

    <p>Various social and economic phenomena</p> Signup and view all the answers

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