If there are no taxes, the economy is in equilibrium when disposable income equals?

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05-09-2022
Business

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If there are no taxes, the economy is in equilibrium when disposable income equals?

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tutorconsortium344 tutorconsortium344 · Answer 1 · 2022-09-09T12:27:49-04:00

There are no business taxes, no income taxes, and no social security taxes, so disposable personal income equals Net National Product (NNP).

The NNP is defined as the entire market value of the goods and services produced by a country over a given time period (often a year), less depreciation. The NNP is a tool that economists typically use to report on the development and strength of a nation-state. It can be used to compare a country's development to that of other nations.

NNP is calculated using the following equation: NNP = Market Value of Finished Goods + Market Value of Finished Services - Depreciation.

To know more about NNP, click here:-

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