The difference between GDP and net taxes is
A)personal income.
B)actual investment spending.
C)disposable income.
D)unplanned investment spending.

Question

Quizplus · Accepted Answer

GDP represents the total value of all goods and services produced in a country, while net taxes are the taxes paid to the government minus any transfer payments received from the government. Disposable income, on the other hand, is the amount of income that households have available for spending and saving after taxes and transfer payments have been made. Therefore, the difference between GDP and net taxes is equal to disposable income.

The Difference Between GDP and Net Taxes Is