Chapter 1 Flashcards
GDP @ Market Prices
Total Value added
Gross Value Added @ Basic Prices
GDP- taxes + subsidies
Net Domestic Product @ Market Prices
GDP - consumption of capital
Gross National Income @ MP
GDP + net primary income from wrest of the world
Net National income from rotw
GDP+NPI(rotw)-consumption of capital
Gross & Net difference
Net (production or income) means excluding consumption of capital (depreciation
National income
Income of individuals who are residents of the country
Primary income from rest of the world
Income from abroad that goes to residents of home country
Net National Disposable Income
GDP + net primary income (non residents living in the country) and net transfers from rotw- consumption of capital
Net Lending
Savings- real investment
=Y + YF(NPI ROTW) + Trf( net transfers rotw) - C - Cg -I - Ig
η (price elasticity if demand)
(dYi/dPi) • (Pi/Yi) ( is a negative)
Net (GDP Terms)
Excluding consumption of capital
National income
residents income
Primary incomes from rest of the world
Wages from working abroad, interest and dividends from abroad which go to residents of the country
