GDP

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

 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)

Income Approach (FOP)
-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

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

Trade = exports - imports
* + Surplus, - Deficit

-NDP  = GDP - DepRate

--Net domestic product - NNP = GNP - DepRate

--Net national product - GNP = GDP - NetFFP