00:01
Here we're taking a look at a few different economic income measurements, specifically national income, personal income, and disposable income, which are three of the main ones often analyzed.
00:10
We're given an example in which personal income taxes are increased.
00:13
So that is the amount that the government is collecting on personal income taxes has increased.
00:19
We're also given that gdp has not changed.
00:22
So we want to know what the effect is on national income, personal income, and disposable income with the information that's been given to us.
00:28
So let's recall real quick that national.
00:30
Income is essentially just equal to gdp, right? it's a measurement of the final, total value of the final output of goods and services in a year.
00:39
So this is just gdp.
00:40
And because we were just told that gdp does not change, we could conclude that national income also does not change.
00:47
So any change that exists here is not existent, okay? it's not applicable.
00:52
Now, personal income is really just individual's total earnings.
00:58
All right.
00:58
So that could come from wages or investments, whatever they are earning an income on...