wats the difference between DISPOSABLE INCOME and PURCHASING POWER ??

Question

economic

Answer 1

Disposable income is what YOU have and purchasing power is what you WIFE has

Answer 2

The difference between disposable income and purchasing power is in its meaning.

Disposable income in economics, is that part of the national income that is available to households for consumption or saving. It is of great importance to both producers and sellers as well as to banks needing deposits and business firms needing loans.

Desposable income is estimated by deducting from Gross National Product all taxes, business saving, and depreciation; then adding government and other transfer payments and government interest payments. (Government transfer payments are those made by the government to individuals for which individuals perform no current service in return. Examples are retirement and gratuity payments and unemployment insurance).

In economics, purchasing power refers to the amount money — or, more generally, liquid assets — can buy. As Adam Smith noted, having money gives one the ability to "command" others' labor, so purchasing power to some extent is power over other people, to the extent that they are willing to trade their labor or goods for money.

If money income stays the same, but the price level increases, the purchasing power of that income falls. Inflation does not always imply falling purchasing power of one's real income, since one's money income may rise faster than inflation.

For a price index, its value in the base year is usually normalized to a value of 100 in the base year. The formula for purchasing power of a unit of money, say a dollar, relative to a standard price index P in a given year is 1/(P/100). So, by definition the purchasing power of a dollar decreases as the price level rises.

Answer 3

Disposable income is what's left over after paying for things such as food, clothing, rent/house payment, utilities.

Purchasing power partly is context dependent. It can be the purchasing power of a dollar which is basically referring to inflation.

Answer 4

disposable income is how much money you have to spend, purchasing power relates to how much you can buy with that money.

Answer 5

disp is just that to throw away go on a cruise gamble do whatever p p is your ability to buy something house car ect.