The Traderszone Network

Published in TZ Latest News 9 February, 2015 by The TZ Newswire Staff

Think NGDI, not NGDP

In the standard national income accounting, gross domestic income equals gross domestic output.  In the simplest model of all (with no government or trade) you have the following identity:

NGDI = C + S = C + I = NGDP  (it also applies to RGDI and RGDP)

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