12 National Income and Output Flashcards
market value (price) of all final goods and services produced
GDP
gross domestic product
GDP
normally expressed in currency of a particular country
GDP
can be computed in “current prices” and “constant prices”
market value
location
GDP
citizenship
GNP
overall production in the country
GDP
overall production of citizens
GNP
✔ income of resident citizen
✔ income of resident foreigner
✗ income of non-resident citizen
GDP
✔ income of resident citizen
✔ income of non-resident citizen
✗ income of resident foreigner
GNP
count value added
production approach
also known as output/sum of value-added
production approach
only count final value added, so GDP isn’t bloated
production approach
add all spending (consumption, investment, gov’t, export minus import)
expenditure approach
add all payments to the factors of production
income approach
add all production from industry origin
industry approach
GDP = C + I + G + X - M
expenditure approach
GDP = wages + rent + interest + profit
income approach
GDP = agricultural + industrial + services
industry approach
formula for growth rate
formula for real gdp
formula for nominal gdp
Nominal = price (current year) x quantity
N - R = +
inflation
N - R = -
deflation
