Working with Economic Indicators

Chapter 4

Indicators of Income

In the previous chapter, gross domestic product was broken down by the type of recipient of the final goods and services: personal consumers, business, government, or net foreign. All recipients made payments for these goods and services that resulted in income to the persons or organizations in the economy who were involved in the creation of those goods and services. These income amounts are important measures in their own right, since the purchasing behavior of individuals and households is largely determined by the incomes they receive and the actions of businesses are largely determined by the profits they realize. This chapter will examine some indicators that measure incomes and profits.

Gross Domestic ...