Personal income and Disposable income. HSC Economics Distinguish Between.

Personal income and Disposable income.


Personal Income
Disposable Income  
Personal income is the sum of all incomes actually received by an individual or household from all the sources during a given year.
There are other personal taxes which are not considered when calculating personal income. In order to derive disposable personal income we must subtract these personal taxes from personal income.
PI = Disposable Income + Personal Income Taxes.
DI = Personal Income - Personal Income Taxes.

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