C + Ig + G + Xn-(Net Exports-Imports)
Income Approach to GDP:
W- wages (compensation of employees/salaries)
+
R- rents (income received by the households & business that supply properly resources)
+
I- interest (money paid by private businesses to the suppliers of loans used to purchase capital)
+
P- profits (owning your own business)
+
Statistical Adjustments (Dividends, Corp income tax, Net foreign)
Trade: exports - imports
Budget= Government purchases of goods & services + Government Transfer Payments - Government Tax & Fee Collection
National Income:
1) Compensation of Employees + Rental Income + Interest Income + Proprietors Income + Corporate Profits
2) GDP - Indirect Business Taxes - Depreciation - Net Foreign Factor Payment
Disposable Personal Income: National Income - Personal Household Taxes + Government Transfer Payments
Net Domestic Product:
GDP - Depreciation
Net National Product:
GNP - Depreciation
Depreciation (Consumption of Fixed Capital): The loss of value in capital equipment due to normal wear & tear.
Gross Investment:
Net Investment + Depreciation
The videos really helped and so did the explanation on the side of the formulas. At first I never really knew what to use when I was asked to add statistical adjustments but I think after looking at your blog, It's easier to know what is included. Everything was also really easy to read and I didn't have a hard time finding what I needed. I missed a day of school and your notes really helped me to catch up on calculating GDP.
ReplyDeleteThe videos really helped and so did the explanation on the side of the formulas. At first I never really knew what to use when I was asked to add statistical adjustments but I think after looking at your blog, It's easier to know what is included. Everything was also really easy to read and I didn't have a hard time finding what I needed. I missed a day of school and your notes really helped me to catch up on calculating GDP.
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