Distinguish between the following.
Personal income and Disposable income
|Personal income is the sum of all incomes actually received by an individual or household from all the sources during a given year.||There are other personal taxes which are not considered when calculating personal income. In order to derive disposable personal income we must subtract these personal taxes from personal income.|
|PI = Disposable Income + Personal Income Taxes.||DI = Personal Income - Personal Income Taxes.|
Concept: Concept of National Income
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