When calculating personal income in macroeconomics, does net income of an unincorporated business count?
When calculating personal income in macroeconomics, does net income of an unincorporated business count or just wages and other labor income? And how do personal income taxes fit in? Also, what counts as personal disposable income?
Public Comments
- Net income of unincorporated business does not count. Income taxes fit in because before you pay income taxes, that is considered 'gross personal income'. This answers your last part of the question. 'Personal disposable income' is each individuals income after taxes have been deducted.
