Personal Disposable Income (PDI) equals
APersonal Income − Personal taxes (direct taxes paid by individuals)
BNational Income − Indirect taxes
CWages + Profit
DPersonal Income + Direct taxes
Answer & Solution
Correct answer: A. Personal Income − Personal taxes (direct taxes paid by individuals)
PDI = Personal Income − Direct (personal) taxes − miscellaneous receipts of government.
It is the income actually available to households for spending or saving.
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