GDP: Gross domestic product.
Total value of all final goods and services produced within country's borders within a year.
All production on income earned in the U.S.
GNP: Gross national product. Total value of all final goods and services produced by Americans in a given year.
American in another country counted
Included:
Final goods and services
Final goods and services
Income earned
Wages
Rents
Interests
Payments
Interest payments or corporate bonds
Current production of final goods
Unsold output (business inventories)
Excluded
--Transfer payments (public and private)
Intermediate goods: avoid multiple counting
(social security, unemployment compensation, scholarships cannot be transferred)
No sell of stocks and bonds; Used or second-hand goods
Non-market transactions (babysitting, illegal drugs, prostitution
DIY repairs, growing own vegetables, etc)
Expenditure Approach
-GDP = C + Ig + G + Xn
-- Personal consumption + Gross-private Domestic Investment + Gov't spending + Net exports (exports - imports)
-GDP = C + Ig + G + Xn
-- Personal consumption + Gross-private Domestic Investment + Gov't spending + Net exports (exports - imports)
Income Approach (FOP)
-GDP = W + R + I + P
-- Wages ( salaries / compensation of employees ) + Rents ( rental income ) + Interest ( interest income ) + Proprietor's Income
-GDP = W + R + I + P
-- Wages ( salaries / compensation of employees ) + Rents ( rental income ) + Interest ( interest income ) + Proprietor's Income
National Income =
CE + PI + RI + II + CP
--Compensation of Employment + Proprietary Income + Rental Income + Interest Income + Corporate Profits
--Compensation of Employment + Proprietary Income + Rental Income + Interest Income + Corporate Profits
National Income =
GDP - IBT - DepRate - Net FFP
--GDP - Indirect business taxes - depreciation - Net foreign factor payment
Disposable Income = National Income - Household taxes + Gov't transfer payment
DPI = NI - HT + GTP
Budget =
Transfer Payments + GPGS - GTFC
--Transfer payments + Gov't purchase of goods and services - Gov't tax and fee collection
* + Deficit, - Surplus
* + Deficit, - Surplus
Trade = exports - imports
* + Surplus, - Deficit
* + Surplus, - Deficit
-NDP = GDP - DepRate
--Net domestic product - NNP = GNP - DepRate
--Net national product - GNP = GDP - NetFFP
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