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National Disposable Income is the sum of the disposable incomes of all resident and institutional units.
National Disposable Income gives us an idea of what is the maximum amount of goods and services the domestic economy has at its disposal
The formula for National Disposable Income is
National Disposable Income = Net National Product at market prices + Other current transfers from the rest of the world
Note
- Current transfers from the rest of the world includes items such as gifts, aids etc
