In a typical year,which of the following measures of aggregate output and income is likely to be the smallest?

Question

Quizplus · Accepted Answer

Disposable income is the smallest measure of aggregate output and income because it is calculated by subtracting taxes and other transfer payments from national income. Therefore, it represents the income available for consumption and saving by households and is typically smaller than national income or GDP. Personal income is calculated after taxes but includes transfer payments, so it is larger than disposable income. GDP and national income are larger measures that include all income generated in the economy, but they do not account for taxes and transfer payments.

In a Typical Year,which of the Following Measures of Aggregate