NATIONAL INCOME
PAPER ASSIGNMENT
To Fulfill the task of Macroeconomic
Irvan Yoga Pardistya, SE., MM.,
Ak.
AHNAF TAQIY ROBBANI
1610631030015
ACCOUNTING
PROGRAM
FACULTY OF ECONOMIC
AND BUSINESS
UNIVERSITY OF
SINGAPERBANGSA KARAWANG
TABLE OF CONTENT
COVER
..............................................................................................................
PREFACE
...........................................................................................................
(INTRODUCTION)............................................................................................
a. Background
....................................................................................................
b. Problem
Formulation .....................................................................................
c. Purpose of
the paper
......................................................................................
(DISCUSSION)
.................................................................................................
(CONCLUSION) ..............................................................................................
REFERENCES ..................................................................................................
Preface
Alhamdulillahi rabbil'alamin, i wanna say thank you for
Allah to give me a chance to keep breathing untill now and for all blesses
here,also, thanks to my parent, my partner and all my friends. Special thanks
for Mr. Irvan Yoga Pardistya,SE,MM to give me this exercises.
All of the things that we know when i'm doing this exercise isnt
easy, i hope that all of my answers can useful and helpful for another people
out of here.
Wassalamualaikum wr.wb
INTRODUCTION
A. Background
National Income is one of
important thing in Macroeconomics because National Income is one of indicator
to knowing about development in each country and about prosperity of their
country. With making this paper i hope we can more understand about National
Income and how to count National Income together.
B. Problem
formulation
1. What is National Income?
2. How to count National Income?
3. The important of knowing how to count National Income
3. The important of knowing how to count National Income
C. Purpose of the
Paper
1. To Knowing what is National Income
2. To Knowing how to count National Income
3. To knowing how important know to count National Income
3. To knowing how important know to count National Income
DISCUSSION
NATIONAL
INCOME
National Income is the total value a country’s final output of all new goods and services produced in one year. Understanding how national income is created is the starting point for macroeconomics.
Gross Domestic Product (GDP)
is value of goods and services in a country that produced by factors of production the citizen
and the foreign country.
Gross National Product (GNP) is
the concept has the same meaning with GDP, but to estimate the types of income
that is little different. In calculating the gross national income of the value
of goods and services were counted in the national income is only the goods and
services produced by factors of production owned by citizens of the national
income is calculated. In the factors of production belongs to inhabitant of
other countries.
Gross National
Product (Gross National Product GNP)
Gross National Product or GNP includes the value of the product in the form
of goods and services produced by a resident of a Contracting State (national)
for 1 year. In terms of PNB (GNP), including the production of goods and
services produced by the citizens who are outside the country, but does not
include the production of foreign companies operating in the region of the
country. If there is production of foreign companies operating region of the
State of Indonesia, should be deducted. Actually, the difference lies in the
GDP to GNP net income factor alone.
Net National
Product (Net National Product)
Net National Product (NNP) is GNP minus depreciation,
or depreciation which is also called the replacement of capital goods.
Replacement or replacement of capital goods or depreciation for production equipment used in
the production process generally estimate it may therefore be less precise and
may cause an error though relatively small.
Here's the formula to determine the NNP :
NNP = GNP - Depreciation (Replacement)
Net National Income (Net National Income)
Net National Income (NNI) is calculated according to
the amount of income that the remuneration received by the public as owners of
production factors. NNI magnitude can be obtained from the NNP minus indirect
taxes. Indirect tax is a tax burden can be transferred to another party, for
example a sales tax, gift tax, import tax, export duties and excise cukai-.
The
following formula to find NNI :
align
= "center">
NNI
= NNP - Indirect Taxes
Gross domestic product (Gross Domestic Product GDP)
Gross domestic product is the
amount of product in the form of goods and services produced by the production
units within the borders of a State for one year. In the calculation of GDP
this, including the production of goods and services produced by companies /
foreigners who operate in the region of a country. Produced goods including
capital goods which have not been taken into account depreciation, hence the
amount obtained from the GDP is considered to be gross / dirty. All the results
of the production / foreign companies in the country that must be paid
so-called factor income payments to aboard, while overseas production results
received so-called factor income receipts from aboard. If paid less than that
received, there will be a payment into the country. The difference is net
income overseas, or so-called net factor income payments to aboard.
If the net factor income notated n then :
GDP - n = GNP or GNP + n = GDP
Three
method to count National Income :
1. Method Output Approach
According to this method, PDB (product domestic bruto) is total production
which product by economics, and this is the formula to count national income :
NT
= NO – NI
NT = Nilai
Tambah (value added)
NO = Nilai Output
NI =
Nilai Input
From this Formula, we can say production makes value
added increase. So good production
activity is activity which product NT
(value added) > 0, Thus, level of PDB is :
Example Calculation Data In Indonesia :
Output
2004
Factor production Output Input Nilai
Tambah
Tambah
Pertanian (Padi)
Industri dan pengolahan
Pengangkutan dan Telekomunikasi
Bank dan Lembaga Lainnya
Bangunan
|
1000 300 (800)
700 400 (200)
500 300 (200) 800 400 (400) 600 300 (300) |
2. Method Income Approach
This Method see economics output value
as total value of remuneration on production factors which used for production
process. That relation between lrvrl of output and production factors, discribe
in this formula :
Q = f(L,K,U,E)
Q = Output
L = Tenaga kerja
K = Barang Modal
U = Uang / Financial
E = Kemampuan / entrepreneur
Remuneration for workers is wages or salaries, for good capital is rent. For asset financial is interest. While for entrepreneur is profit. So, total value of remuneration on production factors is call Pendapatan Nasional (PN).
Examples Calculation Data In Indonesia :
Input
2004
Pendapatan Upah /
Gaji (Computation of Employes)
|
4000
|
Pendapatn Non Gaji
(Properties Income)
|
500
|
Keuntungan
Perusahaan (Corporate Profits)
|
600
|
Pendapatan Bunga
Neto ( Net Interest)
|
500
|
Pendapatan Sewa (
Rental Income)
|
50
|
Pendapatan Nasional (National Income)
|
5650
|
3. Method Expenditure approach
National income calculated by summing all the expenditure to purchase final
goods and service by household consumers (consumption), household manufacturers
(investment), public sector (goverment spending) and external sector (the value
of net export = export - import ) in one year.
There are several types of aggregate spending in the economy :
1. Household Consumption
2. Government Consumption
3. Investment Expenditure
4. Net Export
PDB = C + G + I + (X - M)
C = Household Consumption
G = Government Consumption
I = Investment Expenditure
X = Export.
PERSONAL INCOME AND DISPOSSABLE INCOME
Personal Income
Personal
income can be defined as all types of income, induding income that obtained
without giving something any activity, which is accepted by the population of a
country. That in personal income has included also a transfer payment. The payments
is grantings that done by the government to the various group of society where
the recipient does not need to give a remuneration or effort as anything in
return. Government expanditure that can be classified as transfer payments are
the assisstance that given to the unemployed, money pensions paid to government
employees who do not work anymore, assisstance to the disabled, assisstance to
veterans, and various scholarships given by the government.
Dispossable
Income
If personal income is reduced by taxes to be paid by
the recipient of the income, the value that the remaining so-called disposable
income. Dispossable
income is the income that can be used by the recipients of income, is all
households in the economy, to buy goods and services they want.
From Gross Domestic Products to
Disposable Personal Income, the conclusion is :
C + G + I + (X – M) = Gross
Domestic Product (GDP)
Increase
: Net Factor Income from Abroad
Decrease
: Net Factor Payment
from Domestic
= Gross National Product (GNP)
Decrease
: Depreciation
= Net National Income (NNP)
Decrease
: Indirect taxes
Increase
: Subsidies
= National Income (NI)
Decrease
: Retained Earnings
Decrease
: Social Insurance Payment
Increase
: Personal Interest Income from Government and Consumer
Increase
: Transfer Payment to Persons
= Personal Income (PI)
Decrease
: Personal Taxes
CONCLUSION
National income is the total income earned by people in a country and in a
certain period, the national income could determine the welfare of a country,
and the effectiveness of the economy in the country, there are three methods of
national income include : methods of production, income methods, methods of
expenditure, in addition there are five concept contained in national income
including : GDP, GNP, NNP, NI, PI, DI.
References
Sukirno Sadono. Pengantar
Teori Makroekonomi (second ed). Jakarta : PT. Raja Grafindo Persada, 1994.
Rahardja,
Prathama., and Manurung, Mandala, Teori Ekonomi Makro (5th ed.). Jakarta: Lembaga
Penerbit Fakultas Ekonomi Universitas Indonesia, 2014.
Peter Jochumzen. 2010. Essential of
Macroeconomics. Ventus Publishing ApS
Corona Brezina . Understanding the Gross
Domestic Product and the Gross National Product
