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Expenditures Approach:
Gross Domestic Product (GDP) = C + I g+ G + Xn
Personal Consumption Expenditures (C)
Durable Consumer Goods (3 years or more)
Nondurable Consumer Goods (less than three years)
Consumer Expenditures for Services
Gross Private Domestic Investment (Ig)
Machinery, Equipment, Tools
All Construction (Residential and Business)
Inventory Changes
Government Purchases (G)
Net Exports (Xn)
Exports (X) - Imports (M)
Income (Earnings) Approach:
Add: "WRIPPT"
Compensation of Employees (Wages)
Rents
Interest
Proprietors' Income
Corporate Profits (Retained earnings, dividends, corporate taxes)
Taxes on Production and Imports
Equals: National Income:
Three changes:
Less: Net Foreign Factor Income (Income earned by Americans abroad minus income earned by foreigners in U.S)
Add: Statistical Discrepancy
Consumption of Fixed Capital (Depreciation)
Equals: Gross Domestic Product
Other significant numbers:
Start with Gross Domestic Product (GDP)
Less: Capital Consumption (Depreciation)
Equals: Net Domestic Product (NDP)
Less: Statistical Discrepancy
Add: Net Foreign Factor Income
Equals: National Income (NI)
Less: Taxes on Production and Imports
Social Security Contributions (Payroll Taxes)
Corporate Income Taxes
Undistributed Corporate Profits (Retained Earnings)
Add: Transfer Payments
Equals: Personal Income (PI)
Less: Personal Taxes
Equals: Disposable Income (DI) (Note: DI =C+S)
What else can I help you with?
How does macro economics differ from micro economics?
Macro economic is differ from micro economic because macro economic study as a whole economics but micro economic study only of an individual.
Is population considered as an economic issue if yes is it a macro or microeconomics?
Yes, it is an economic issue and it is a macro economic indicator.
What is the dichotomy between macro economic and micro economic?
hehehe
Advantages and disadvantage of using the GDP as a measure of productivity and economic health?
The advantages of using GDP as a measure of productivity and economic health is that GDP is universal and can be used to measure an economy's growth or decline. The disadvantage of using GDP as a measure of productivity and economic health is that it does not effectively measure the quality of products.
What is the difference between GDP and GDP per capita, and how do they each contribute to measuring a country's economic performance?
Gross Domestic Product (GDP) measures the total economic output of a country, while GDP per capita divides this total output by the population to give an average income per person. GDP reflects the overall economic size of a country, while GDP per capita provides a more accurate picture of individual prosperity. Both indicators are important for assessing a country's economic performance, with GDP showing the overall economic activity and GDP per capita indicating the average standard of living.
How does macro economics differ from micro economics?
Macro economic is differ from micro economic because macro economic study as a whole economics but micro economic study only of an individual.
How do you change the macro economic police bank?
bank how to changes in macro economic police
Is population considered as an economic issue if yes is it a macro or microeconomics?
Yes, it is an economic issue and it is a macro economic indicator.
Macro environment forces?
In business, macro environmental forces include inflation, currency exchange rates, GDP growth and other factors. They also include unemployment and overall economic growth. This includes many factors that effect the environment on a larger scale.
What area would you find GDP in?
GDP is the Gross Domestic Product, a measure of all the economic value added of a country (or territory) over a specified period of time.
What is the dichotomy between macro economic and micro economic?
hehehe
Advantages and disadvantage of using the GDP as a measure of productivity and economic health?
The advantages of using GDP as a measure of productivity and economic health is that GDP is universal and can be used to measure an economy's growth or decline. The disadvantage of using GDP as a measure of productivity and economic health is that it does not effectively measure the quality of products.
What is a country's GDP?
A country's GDP is the market-valued sum of all its economic activity.
What is the difference between GDP and GDP per capita, and how do they each contribute to measuring a country's economic performance?
Gross Domestic Product (GDP) measures the total economic output of a country, while GDP per capita divides this total output by the population to give an average income per person. GDP reflects the overall economic size of a country, while GDP per capita provides a more accurate picture of individual prosperity. Both indicators are important for assessing a country's economic performance, with GDP showing the overall economic activity and GDP per capita indicating the average standard of living.
Does domestic macro economic environment effect all business segment alike?
No, the domestic macro economic environment doesn't impact each business the same way. Since businesses have different business models, the results of the macro economic environment depends on the business.
What economic activity GDP excludes?
lalalala
How does a country measure its economic health?
GDP.. this is the answer.
