Bba 2 be ii u 1.3 national income
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This document defines key terms related to measuring national income and output, including Gross Domestic Product (GDP), value added approach, inventory changes, GDP expenditure approach, GDP income approach, Gross National Product (GNP), Net National Product (NNP), National Income (NI), Personal Income (PI), Disposable Personal Income (DPI), nominal and real GDP, price indexes like GDP price index and CPI, and sources used in compiling the information.
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national income
This document defines key concepts in national income accounting including Gross Domestic Product (GDP), GDP using the value-added approach, how GDP accounts for inventory changes, expressing GDP as an expenditure and income measure, other aggregate output measures like GNP and NNP, nominal and real GDP, and different price indexes. GDP is defined as the market value of final goods and services produced within a country's borders in a given year, excluding intermediate goods, past production, and non-market activities. GDP can be expressed as the sum of value-added by all firms or as the sum of consumption, investment, government spending, and net exports.
GDP and GNP
This document discusses various concepts of national income, including gross national product (GNP), net national product (NNP), gross domestic product (GDP), and personal income. It defines each concept and provides details on calculating and comparing GNP and GDP. GNP is the total value of final goods and services produced by a country's citizens in a given time period, while GDP excludes income earned abroad from the GNP. The document outlines the components of expenditures that make up GNP and GDP, including consumption, investment, government expenditures, and net exports. It also notes some problems that can occur when measuring GDP, such as double counting and the exclusion of non-productive transactions.
Gross Domestic Product (GDP)
Gross domestic product (GDP) is a monetary measure of the value of all final goods and services produced in a country or region over a period of time. GDP is calculated by totaling consumption, investment, government spending, and net exports. Consumption includes spending on durable goods, non-durable goods, and services by households. Investment includes business and household capital expenditures. Government spending consists of government purchases of goods and services but not transfer payments. Net exports are calculated as exports minus imports of goods and services. India has one of the fastest growing economies in the world, with a GDP of $2183 billion in 2015 and a growth rate of 7.3% that year.
Methodology of Computing Gross Domestic Product (GDP) in India
Gross Domestic Product (GDP) is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific period of time. It is one of the most important measures used globally to analyse and compare the economic growth of Countries. In this Webinar, we shall understand the term GDP and the methodology of Computation of GDP in India.
Gross National Product
The document discusses national income accounting and how it was developed in response to the Great Depression. It explains how GDP, GNP, and other measures are calculated and what they represent. Specifically, it outlines the three approaches to calculating GDP - output, income, and expenditure - and how GDP is used to measure a country's economic performance and standard of living. However, it also notes some limitations of GDP as an indicator.
National income measurement
This document discusses different methods of measuring national income:
1) Production method measures the total value added by all producing units. It avoids double counting by excluding intermediate goods.
2) Income method measures total factor incomes (wages, rent, interest, profit). It equals the sum of compensation of employees, operating surplus, and mixed income.
3) Expenditure method measures total final expenditures including household consumption, government spending, investment and net exports. This equals gross domestic product.
Measurement of national income, GDP ,GNP, CPI calculation and discussion
It is a economic presentation. In this presentation many economic terms are discussed. it is informative and helpful for all.
GDP, GNP, NNP, NDP, REAL GDP, NOMINAL GDP, GDP DEFLATOR
THIS SLIDES WILL WILL HELP YOU IN WHAT IS GDP WHICH THINGS NOT INCLUDE IN GDP FORMULA OF GDP AND ALSO DEFINE ITS EACH FACTOR AND WHAT IS GNP EXAMPLES OF GNP DIFFERENCE BETWEEN NDP AND NNP AND ALSO DIFFERENCE BETWEEN REAL GDP AND NOMINAL GDP AND HOW TO CALCULATE GDP DEFLATOR EVERY TOPIC IS DEFINE IN THIS SLIDES VERY CLEAR AND WITH EXAMPLES.
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national income
This document defines key concepts in national income accounting including Gross Domestic Product (GDP), GDP using the value-added approach, how GDP accounts for inventory changes, expressing GDP as an expenditure and income measure, other aggregate output measures like GNP and NNP, nominal and real GDP, and different price indexes. GDP is defined as the market value of final goods and services produced within a country's borders in a given year, excluding intermediate goods, past production, and non-market activities. GDP can be expressed as the sum of value-added by all firms or as the sum of consumption, investment, government spending, and net exports.
GDP and GNP
This document discusses various concepts of national income, including gross national product (GNP), net national product (NNP), gross domestic product (GDP), and personal income. It defines each concept and provides details on calculating and comparing GNP and GDP. GNP is the total value of final goods and services produced by a country's citizens in a given time period, while GDP excludes income earned abroad from the GNP. The document outlines the components of expenditures that make up GNP and GDP, including consumption, investment, government expenditures, and net exports. It also notes some problems that can occur when measuring GDP, such as double counting and the exclusion of non-productive transactions.
Gross Domestic Product (GDP)
Gross domestic product (GDP) is a monetary measure of the value of all final goods and services produced in a country or region over a period of time. GDP is calculated by totaling consumption, investment, government spending, and net exports. Consumption includes spending on durable goods, non-durable goods, and services by households. Investment includes business and household capital expenditures. Government spending consists of government purchases of goods and services but not transfer payments. Net exports are calculated as exports minus imports of goods and services. India has one of the fastest growing economies in the world, with a GDP of $2183 billion in 2015 and a growth rate of 7.3% that year.
Methodology of Computing Gross Domestic Product (GDP) in India
Gross Domestic Product (GDP) is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific period of time. It is one of the most important measures used globally to analyse and compare the economic growth of Countries. In this Webinar, we shall understand the term GDP and the methodology of Computation of GDP in India.
Gross National Product
The document discusses national income accounting and how it was developed in response to the Great Depression. It explains how GDP, GNP, and other measures are calculated and what they represent. Specifically, it outlines the three approaches to calculating GDP - output, income, and expenditure - and how GDP is used to measure a country's economic performance and standard of living. However, it also notes some limitations of GDP as an indicator.
National income measurement
This document discusses different methods of measuring national income:
1) Production method measures the total value added by all producing units. It avoids double counting by excluding intermediate goods.
2) Income method measures total factor incomes (wages, rent, interest, profit). It equals the sum of compensation of employees, operating surplus, and mixed income.
3) Expenditure method measures total final expenditures including household consumption, government spending, investment and net exports. This equals gross domestic product.
Measurement of national income, GDP ,GNP, CPI calculation and discussion
It is a economic presentation. In this presentation many economic terms are discussed. it is informative and helpful for all.
GDP, GNP, NNP, NDP, REAL GDP, NOMINAL GDP, GDP DEFLATOR
THIS SLIDES WILL WILL HELP YOU IN WHAT IS GDP WHICH THINGS NOT INCLUDE IN GDP FORMULA OF GDP AND ALSO DEFINE ITS EACH FACTOR AND WHAT IS GNP EXAMPLES OF GNP DIFFERENCE BETWEEN NDP AND NNP AND ALSO DIFFERENCE BETWEEN REAL GDP AND NOMINAL GDP AND HOW TO CALCULATE GDP DEFLATOR EVERY TOPIC IS DEFINE IN THIS SLIDES VERY CLEAR AND WITH EXAMPLES.
Gross national product
Gross National Product only measures the value of final goods and services produced within a country in a given year. It does not account for imports, non-market activities, or the distribution of income and wealth within an economy. GNP is an aggregate measure used to estimate the size of an economy.
National income
National income measures the total value of goods and services produced within an economy over a period of time. It is important for economists to measure national income to analyze economic growth, changes in living standards, and income inequality. There are several methods to calculate national income, including the product method, income method, and expenditure method. While measurement of national income provides useful information, it also poses challenges such as defining what constitutes a nation's production, avoiding double counting, and accurately calculating depreciation. National income statistics have various uses including formulating economic policies, studying economic structure, and making international comparisons.
Ni ppt
National income measures the total value of goods and services produced within an economy over a period of time without duplication. It is important for economists to measure national income to analyze economic growth, standard of living, and income inequality. National income can be measured using the product method, income method, or expenditure method. Each method involves estimating the total GDP, GNP, or NNP through summing the value of final goods/services, total income, or total expenditures respectively in an economy. There are challenges to accurately measuring national income such as avoiding double counting, accounting for transfer payments, and calculating depreciation. National income statistics are used for economic policy formulation, studying economic structure, and comparing economic welfare across countries.
Components of GDP
GDP or Gross Domestic Product is the total market value of all final goods and services produced within a country in a given year. It has four main components: consumption, investment, government spending, and net exports. Consumption, the largest component, includes household spending on durable goods, nondurable goods, and services. Investment is spending by business firms on capital equipment and structures to produce other goods and services. Government spending encompasses purchases by federal, state, and local governments. Net exports is calculated as exports minus imports and represents international trade.
2. national income
National income is the total value of all final goods and services produced in a country in a year. It can be measured using three methods - the product or value added method, income method, and expenditure method. The product method sums the value added at each stage of production. The income method adds up incomes from factors of production. The expenditure method equals total consumption and investment expenditures. National income is important because it indicates a country's overall economic activity and standard of living.
National income accounting
The document discusses key concepts related to measuring a nation's economic performance through national income accounting. It defines gross domestic product (GDP) as the market value of all final goods and services produced within a nation in a given period, usually a year. GDP is measured through either the expenditure approach, which sums consumption, investment, government spending, and net exports, or the income approach, which sums compensation of employees, business profits, rents, and nonincome adjustments like depreciation. Other concepts discussed include gross national product (GNP), national income, personal income, disposable personal income, nominal GDP, real GDP, and the GDP chain price index.
Gdp
This document discusses how economists define and measure GDP. It provides three main methods for calculating GDP - the production, expenditure, and income methods. It explains how GDP is a measure of the market value of all final goods and services produced within a country in a given period of time. However, GDP has limitations as a measure of economic well-being, as it does not account for non-market activities, environmental factors, inequality, and other social considerations. The document emphasizes using real GDP, which accounts for changes in quantities rather than just current dollar values, when analyzing economic growth over time.
National income
National income can be measured using three methods: product, income, and expenditure. GDP is the total value of final goods and services produced domestically in one year, while GNP includes income earned abroad. National income data are used for economic planning and welfare comparisons. Challenges in measurement include non-monetized transactions, an unorganized sector, and multiple sources of income.
National Income Accounting, A theoretical discussion.
This document discusses national income accounting. It defines key terms like gross domestic product, gross national product, net national product, and national income. It describes three approaches to measuring national income - the expenditure approach, income approach, and product approach. It outlines the steps and components involved in each approach. The document also discusses some conceptual and statistical problems with national income accounting, such as the difficulty in measuring non-monetary economic activity and obtaining accurate data from all sectors of the economy.
2. national income iimmm
The document discusses key concepts related to measuring national income, including:
1) Gross National Product (GNP) is the total value of all final goods and services produced by a nation's resources in a year, including income earned abroad.
2) Gross Domestic Product (GDP) measures production within a nation's borders, regardless of ownership, and excludes income earned abroad.
3) National income statistics are used for economic planning, reviewing changes in living standards over time, comparing economic performance between countries, and appraising economic growth.
National income accounting
I do not have enough information to determine the category of military expenditure or present two situations where GDP=GDE based on the given document. The document provides an overview of macroeconomics concepts like GDP, GNP, national income accounting, business cycles, inflationary and recessionary gaps, but it does not specify details about military expenditure categories or conditions for GDP=GDE.
National Income Accounting
Lecture slides for an undergraduate course on Basic Macroeconomics that I taught in the Fall of 2007.
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The document discusses different models of the circular flow of income and expenditure, including two-sector, three-sector, and four-sector models. It also defines key terms related to national income accounting such as GDP, GNP, NDP, and methods for calculating real GDP. The relationship between expenditure, output, and income methods for measuring GDP is explained. The document also distinguishes between GDP and GNP as well as defines personal and disposable income.
national income ,GNP, GDP, NOMINAL AND REAL INTEREST RATES& PPP'S
National income refers to the total money value of all final goods and services produced within a country in a given year. It is used to measure the overall economic activity and standard of living in a country. GDP is a key measure of national income and is defined as the total market value of all final goods and services produced within a country in a given period of time. GDP can be calculated using the expenditure approach, income approach, or output approach and includes consumption, investment, government spending, and net exports. While GDP is a useful measure, it does not account for all factors that affect economic well-being such as leisure, environmental quality, and non-market activities.
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This document defines national income and provides explanations from various economists. It discusses key concepts related to measuring national income such as GDP, GNP, NNP, personal income, and methods of avoiding double counting. Census of production, income, and expenditure methods for measuring national income are described. Factors that determine national income and difficulties calculating it are also outlined.
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This document discusses measuring GDP using the expenditure and income approaches. It defines GDP as the total market value of final goods and services produced within a country in a given period. The four main categories of expenditure are personal consumption, gross private investment, government spending, and net exports. Using the income approach, GDP is measured as the sum of compensation of employees, business profits, interest, and other income. The document also discusses real GDP, inflation, and limitations of GDP as a welfare measure.
National income concepts
1. The document defines several concepts related to national income:
2. Gross Domestic Product (GDP) is the total value of all final goods and services produced within a country in a given year. It is calculated as the sum of consumption (C), gross investment (GI), government spending (G), and net exports (exports - imports).
3. Gross National Product (GNP) is GDP plus income earned from abroad (foreign assets), minus income earned domestically by foreign entities.
4. Net National Product (NNP) is GNP minus depreciation on capital goods like buildings and equipment. NNP at market prices uses market valuations, while NNP at factor cost adjust
Presentation 2 national income
This document discusses key concepts in national income accounting including GDP, GNP, NNP, personal income, and disposable personal income. It explains how GDP is calculated using the expenditure, income, and output approaches. It outlines the circular flow of income and payments between firms, households, and the government. It also distinguishes between nominal and real GDP and defines per capita GDP as a measure of average income.
National income accounting 1
The document discusses various methods for calculating GDP, including the income, expenditure, and output approaches. It notes that all approaches should yield the same result according to the circular flow model. It also discusses related concepts like GNP, national income, personal income, disposable income, real GDP, GDP deflator, and purchasing power parity which are used to adjust GDP comparisons.
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Gross National Product only measures the value of final goods and services produced within a country in a given year. It does not account for imports, non-market activities, or the distribution of income and wealth within an economy. GNP is an aggregate measure used to estimate the size of an economy.
National income
National income measures the total value of goods and services produced within an economy over a period of time. It is important for economists to measure national income to analyze economic growth, changes in living standards, and income inequality. There are several methods to calculate national income, including the product method, income method, and expenditure method. While measurement of national income provides useful information, it also poses challenges such as defining what constitutes a nation's production, avoiding double counting, and accurately calculating depreciation. National income statistics have various uses including formulating economic policies, studying economic structure, and making international comparisons.
Ni ppt
National income measures the total value of goods and services produced within an economy over a period of time without duplication. It is important for economists to measure national income to analyze economic growth, standard of living, and income inequality. National income can be measured using the product method, income method, or expenditure method. Each method involves estimating the total GDP, GNP, or NNP through summing the value of final goods/services, total income, or total expenditures respectively in an economy. There are challenges to accurately measuring national income such as avoiding double counting, accounting for transfer payments, and calculating depreciation. National income statistics are used for economic policy formulation, studying economic structure, and comparing economic welfare across countries.
Components of GDP
GDP or Gross Domestic Product is the total market value of all final goods and services produced within a country in a given year. It has four main components: consumption, investment, government spending, and net exports. Consumption, the largest component, includes household spending on durable goods, nondurable goods, and services. Investment is spending by business firms on capital equipment and structures to produce other goods and services. Government spending encompasses purchases by federal, state, and local governments. Net exports is calculated as exports minus imports and represents international trade.
2. national income
National income is the total value of all final goods and services produced in a country in a year. It can be measured using three methods - the product or value added method, income method, and expenditure method. The product method sums the value added at each stage of production. The income method adds up incomes from factors of production. The expenditure method equals total consumption and investment expenditures. National income is important because it indicates a country's overall economic activity and standard of living.
National income accounting
The document discusses key concepts related to measuring a nation's economic performance through national income accounting. It defines gross domestic product (GDP) as the market value of all final goods and services produced within a nation in a given period, usually a year. GDP is measured through either the expenditure approach, which sums consumption, investment, government spending, and net exports, or the income approach, which sums compensation of employees, business profits, rents, and nonincome adjustments like depreciation. Other concepts discussed include gross national product (GNP), national income, personal income, disposable personal income, nominal GDP, real GDP, and the GDP chain price index.
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This document discusses how economists define and measure GDP. It provides three main methods for calculating GDP - the production, expenditure, and income methods. It explains how GDP is a measure of the market value of all final goods and services produced within a country in a given period of time. However, GDP has limitations as a measure of economic well-being, as it does not account for non-market activities, environmental factors, inequality, and other social considerations. The document emphasizes using real GDP, which accounts for changes in quantities rather than just current dollar values, when analyzing economic growth over time.
National income
National income can be measured using three methods: product, income, and expenditure. GDP is the total value of final goods and services produced domestically in one year, while GNP includes income earned abroad. National income data are used for economic planning and welfare comparisons. Challenges in measurement include non-monetized transactions, an unorganized sector, and multiple sources of income.
National Income Accounting, A theoretical discussion.
This document discusses national income accounting. It defines key terms like gross domestic product, gross national product, net national product, and national income. It describes three approaches to measuring national income - the expenditure approach, income approach, and product approach. It outlines the steps and components involved in each approach. The document also discusses some conceptual and statistical problems with national income accounting, such as the difficulty in measuring non-monetary economic activity and obtaining accurate data from all sectors of the economy.
2. national income iimmm
The document discusses key concepts related to measuring national income, including:
1) Gross National Product (GNP) is the total value of all final goods and services produced by a nation's resources in a year, including income earned abroad.
2) Gross Domestic Product (GDP) measures production within a nation's borders, regardless of ownership, and excludes income earned abroad.
3) National income statistics are used for economic planning, reviewing changes in living standards over time, comparing economic performance between countries, and appraising economic growth.
National income accounting
I do not have enough information to determine the category of military expenditure or present two situations where GDP=GDE based on the given document. The document provides an overview of macroeconomics concepts like GDP, GNP, national income accounting, business cycles, inflationary and recessionary gaps, but it does not specify details about military expenditure categories or conditions for GDP=GDE.
National Income Accounting
Lecture slides for an undergraduate course on Basic Macroeconomics that I taught in the Fall of 2007.
This lecture introduces national income accounts.
National income accounting
The document discusses different models of the circular flow of income and expenditure, including two-sector, three-sector, and four-sector models. It also defines key terms related to national income accounting such as GDP, GNP, NDP, and methods for calculating real GDP. The relationship between expenditure, output, and income methods for measuring GDP is explained. The document also distinguishes between GDP and GNP as well as defines personal and disposable income.
national income ,GNP, GDP, NOMINAL AND REAL INTEREST RATES& PPP'S
National income refers to the total money value of all final goods and services produced within a country in a given year. It is used to measure the overall economic activity and standard of living in a country. GDP is a key measure of national income and is defined as the total market value of all final goods and services produced within a country in a given period of time. GDP can be calculated using the expenditure approach, income approach, or output approach and includes consumption, investment, government spending, and net exports. While GDP is a useful measure, it does not account for all factors that affect economic well-being such as leisure, environmental quality, and non-market activities.
National Income Accounting
This presentation includes the definition of National Income Accounting, it also covers Gross Domestic Products including: types, difference between nominal and real GDP and it also covers the other measure of output and income :)
National in come and product concept
This document defines national income and provides explanations from various economists. It discusses key concepts related to measuring national income such as GDP, GNP, NNP, personal income, and methods of avoiding double counting. Census of production, income, and expenditure methods for measuring national income are described. Factors that determine national income and difficulties calculating it are also outlined.
National Income Accounting
All the three methods of national income accounting are explained with mathematical questions and answers. It is very helpful for the NCERT and SCERT plus two commerce and humanities students who have to learn these methods in the second chapter of macroeconomics.
National income By Prof. Padmvati Patil
Concept and meaning of National income
Methods of measuring National income
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This document discusses measuring GDP using the expenditure and income approaches. It defines GDP as the total market value of final goods and services produced within a country in a given period. The four main categories of expenditure are personal consumption, gross private investment, government spending, and net exports. Using the income approach, GDP is measured as the sum of compensation of employees, business profits, interest, and other income. The document also discusses real GDP, inflation, and limitations of GDP as a welfare measure.
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1. The document defines several concepts related to national income:
2. Gross Domestic Product (GDP) is the total value of all final goods and services produced within a country in a given year. It is calculated as the sum of consumption (C), gross investment (GI), government spending (G), and net exports (exports - imports).
3. Gross National Product (GNP) is GDP plus income earned from abroad (foreign assets), minus income earned domestically by foreign entities.
4. Net National Product (NNP) is GNP minus depreciation on capital goods like buildings and equipment. NNP at market prices uses market valuations, while NNP at factor cost adjust
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The document discusses key concepts related to national income accounting in India. It provides the following information:
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1. GDP is the total monetary value of all finished goods and services produced within a country's borders in a given time period, and is a measure of the size of the economy.
2. There are two types of GDP - nominal GDP which uses current prices, and real GDP which is inflation-adjusted.
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Measurement of National Income-concepts simplified
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Human capital formation refers to the process of acquiring and increasing the number of persons who have the skills, education, experience and access to health care needed to be productive. It is better explained as increasing the knowledge, skill levels and capacities of people as given in statement 2.
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Gdp
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The Measurement of National Income, GDP, GNP, Personal Income, Disposable Personal Income, GDP Per capita. The following presentation depicts different measures and concepts of National Income from the book titled: Macroeconomics by George Mankiw, 9th edition.
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National income
National income is the total value of all goods and services produced in a country in a year. It can be measured using three approaches: the expenditure approach, which adds up personal consumption, investment, government spending, and net exports; the income approach, which adds up wages and salaries, rents, profits, interest, and dividends; and the product approach, which measures the net value added of different sectors of the economy. National income includes GDP, GNP, NNP, and other metrics, and can be used to calculate personal and disposable personal income.
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National income measures total income including wages, corporate profits, and taxes. It is broader than personal income which only includes wages and transfer payments. GDP is the total market value of final goods and services produced within a country in a period. It can be measured by production, expenditure, or income. Unemployment is measured by the number of people without jobs but seeking work divided by the total labor force.
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Bba 2 be ii u 1.3 national income
- 1. Course: BBA-2 Subject: BE 2 Unit:2 National Income Accounting
- 2. Gross Domestic Product (GDP) The market value of final goods and services produced within a country’s borders in a given year Does not include: Intermediate goods Goods produced in the past Non-market production Black market Underground economy Household production
- 3. GDP using value-added approach Final value of output = sum of value-added by all firms in the economy
- 4. GDP and inventory GDP is a measure of output, not sales The annual change in inventory is included in GDP If production is greater than sales, inventories increase If production is less than sales, inventories decrease Inventory change may be planned or unplanned. Inventory change is included as a component of investment spending
- 5. GDP as expenditure GDP = C + I + G + X C = consumption I = gross investment G = government spending X = net exports = exports - imports
- 6. GDP as income GDP can also be measured by the income generated during production GDP = wages + rent+ interest + profits – net factor income from abroad + capital consumption allowance (depreciation) + indirect business taxes
- 7. Other measures of aggregate output Gross National Product (GNP) = GDP + net factor income from abroad Net National Product (NNP) = GNP – capital consumption allowance NNP includes only net investment (= gross investment – depreciation) National Income (NI) = NNP – indirect business taxes (and some minor adjustments)
- 8. Other measures of aggregate output (continued) Personal Income (PI) = NI – income earned but not received + income received but not earned Undistributed corporate profits Transfer payments = income received without any good or service provided in return Examples: social security benefits, unemployment compensation, welfare programs, etc. Disposable personal income (DPI) DPI = PI – personal taxes DPI = C + S C = consumption, S = savings
- 9. Nominal and real GDP Nominal variable – expressed in current dollars Real variable – expressed in constant dollars (using a given base year) Price index = cost of basket of goods in the current year / cost of basket of goods in the base year Inflationary bias Chain-type price index
- 10. Types of price indexes GDP price index Consumer price index (CPI) Producer price index (PPI) (previously known as the wholesale price index)
- 11. Source Macroeconomics: Theory and Policy-Vanita Agarwal, Pearson Publication Macro Economics-D.M. Mithani, Himalaya Publishing House, Mumbai Macro Economics-H.L.Ahuja, S. Chand and Company Ltd., Delhi Macro Economic theory-M.C.Vaish, Vikas Publishing House, Delhi Macro Economic Analysis-Edward Shapiro, Galyotia Publications (P) Ltd Macro Economics-M.L. Seth, Lakshmi Narayan Agarwal Publishers