National Income (Macroeconomics)

NATIONAL INCOME (MACROECONOMICS)

Lecture : Irvan Yoga Pardistya, SE., MM., Ak

By :

Armike Febtinugraini           1610631030049

ACCOUNTING – A8

ECONOMIC & BUSINESS FACULTY

SINGAPERBANGSA KARAWANG UNIVERSITY

2016

PREFACE

            Thankyou almighty God, who has given His bless to the writer for finishing this macroeconomics assignment. Thankyou for Mr. Irvan Yoga Pardistya, SE., MM., Ak who given the writer the lesson of National Income.Thankyou for my parents who given the writer strong support.

                Hopefully we as a student in “State Singaperbangsa Karawang University” can work more professional by using English as the second language whatever we done. Thank you.

Armike Febtinugraini



NPM : 1610631030049

Table of Content

     Cover                                                                                                                                      1

     Preface                                                                                                                                    2

     Table of Content                                                                                                                     3

     Revenue Income                                                                                                                     4

     Concept of National Income                                                                                                  4

     Calculation Method of National Income                                                                                5

     Reference                                                                                                                                9

   1. Revenue Income

            National Income is all income of people who given by economics matters in one period or a specific time.

   2. Concept of national income

a.      Gross Domestic Product (GDP)

      GDP is a value of goods and services which produced by people in one period include produced by foreign who stay in the country (example : Indonesia), but not value of goods and services or income which produced by indonesian citizen who stay abroad.

GDP = C+I+G+(X-M)

C = Consumption

I = Investment

G = Government’s outcome

X = Export

M = Import

b.      Gross National Product

      GNP is value of goods and services which produced by every citizen in one period, include produced by indonesian citizen who stay abroad, but excluding value of goods and services which produced by foreign who stay in Indonesia

GNP = GDP+Net national asset Income at abroad

c.       Net National Product (NNP)

      NNP obtained from difference between GNP and depreciation of capital goods.

NNP = GNP-Depreciation

d.      Net National Income (NNI)

      NNI is income of all citizen as service’s reply for all of prodection factors which is used

NNI = NNP-Indirect tax+subsidy

e.       Personal income (PI)

      PI is a part of national income which is the individuals right in the economy as a service’s reply of join in the production process.

PI = National Income-Retained Earnings-Payment of Socil Insurance+Interest income which received by government and consumer+transfer payment

f.       Disposible Income (DI)

      DI is riil’s income hichis ready for budgeting or saving

DI = PI-Direct tax/PPH

Source : Imamul Arifin. Membuka Cakrawala Ekonomi untuk kelas X. PT Setia Putra. Hal 92-94

   3. Calculation Method of National Income

a.      Output Method

      According this method, national income (GDP) is total of output which produced by people in the economy of country.

Value added = Output value – Input Value

Example :

Textil = Output –Input = Value

                1200  -  1000 = 200

Source : Bambang Widjajanta dan Aristanti Widyaningsih. Ekonomi kelas X. CV Putra Praya. 2007. Bandung. Hal 103

b.      Income Approach

      In this methode, summary of all income which received by each people that join in a production activity.

Y = r+w+i+p

Y = National Income

R = rent

W = wages

I = Interest

P = Profit

Example :

      At the production of gandum to wheat flour (tepung terigu), the owner of company lease machine Rp. 10,00 and borrow capital from bank with interest Rp. 5,00. Afer being wheat flour, the value added up to Rp. 25,00. And pay wages to farmer Rp. 50,00. From this activity, we know that profit of owner is just Rp. 10,00. Meanwhile, Rp. 10,00 for pay the rent, Rp. 5,00 for pay the interest.

So,

Y = r+w+i+p

R = 10,00

W = 50,00

I = 5,00

P = 10

      Y = 10+50+5+10

      Y = 75

Source :

Source : Imamul Arifin. Membuka Cakrawala Ekonomi untuk kelas X. PT Setia Putra. Hal 94-95

c.       Outcome Method

      This metod uses the total of outcome on economics on one period..

Y = C+I+G+(X-M)

Y= National Income

C = Consumption

I = Interest

G = Government’s outcome

X = Export

M = Import

Example :

GDP of Indonesia  1996

Private  Consumption                   = 308.469

Governments Consumption          =    40.695

Gross Capital Formation               = 172.777

Export of goods and services       = 138.675

Import of goods and services       = 131.660

Y = 308.469+172.777+40.695+(138.675-131.660)

Y = 528.956

Source : DR. Prathama Rahardja. Teori Ekonomi Makro Suatu Pengantar. Jakarta. 2004. Hal 23-24

References

Arifin, Imamul. Membuka Cakrawala Ekonomi untuk kelas X. PT Setia Putra.

Widjajanta, Bambang dan Aristanti Widyaningsih. Ekonomi kelas X. CV Putra

        Praya. 2007. Bandung.

Rahardja, Prathama. Teori Ekonomi Makro Suatu Pengantar. Jakarta. 2004.