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1. Personal Income (PI):
Personal Income is the income actually received by the households from all sources in the form of current transfer payments and factor income. It includes social security benefits, unemployment compensation, and welfare payments.
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- Personal Income (PI) = National Income – Undistributed Profits – Corporate Income Tax – Net Interest Payment by the Household + Transfer Payments to the household by the government and company.
- 2. Personal Disposable Income (PDI): Personal Disposable Income (PDI) is the personal income remaining with individuals after paying direct personal taxes like income tax and house tax and other fees and fines to the government administrative departments.
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