Expenditures Notes

Expenditure Approach- Add up the market value of all domestic expenditures made on final good and services with a single year

C+Ig+G+Xn=GDP

Income Approach- Adding up all the income earned by households and firms in a single year.

GDP= W+R+I+P+ Statistical adjustment  ( Has to = Expenditure)

Wages

Rents

Interest

Profit

 

Budget- Government purchases of goods and services+ Government transfer payments- Government tax and fee collection

If Budget is "+" you have a deficit

If Budget is "-" you have a surplus

Trade-  Exports-imports

GNP- GDP+Net foreign factor payment  

NNP(Net national product)- GNP- Depreciation  

NDP (Net Domestic Product)- GDP- Depreciation 

National Income- 

1. GDP- Indirect business taxes - Depreciation - Net Foreign Factor Payments

2. Compensation of Employees + Proprietor Income+ Rental Income + Interest Income + Corporate Profits

Disposable Personal Income- National Income- Personal Household taxes+ Government Transfer Payments