Measuring Macroeconomic Activity I (Production, Income and Expenditure)

Question 1

NIPA

Answer 1

National Income and Product Account

Question 2

3 ways to determin GDP

Answer 2

1. Product Approach
2. Income Approach
3. Expenditure Approach

Question 3

Product Approach

Answer 3

GDP = value of all goods an services newly produced - value of all intermediate goods and services used in the production

GDP = sum of value added at each stage of the production

Question 4

Income Approach

Answer 4

GDP = sum of all incomes earned in the production of all new goods and services that added value

Question 5

Expenditure Approach

Answer 5

GDP = sum of all expenditure by final users of newly produced goods and services

GDP = Y = C + I + G + EX - IM

Question 6

GNP ( GNI )

GNDP ( GNDI )

Answer 6

Gross national product ( gross national income )

Gross national disposable product ( gross national disposable income)

Question 7

From GDP to GNP

Answer 7

GDP + primary income received from Nonresidents
- primary income paid to Nonresidents
= GNP

GDP + BPI = GNP

Question 8

BPI ( NFIA)

Answer 8

Balance on primary income ( net factor income from abroad )

Question 9

From GNP to GNDP

Answer 9

GNP + secondary income received from Nonresidents
- secondary income paid to Nonresidents
= GNDP

GNP + BSI = GNDP

Question 10

BSI ( NUT )

Answer 10

Balance on secondary income ( net unilateral transfers )

Question 11

NDP

Answer 11

Net domestic product

Question 12

From GDP to NDP

Answer 12

GDP - consumption of fixed capital ( depreciation )

= NDP

Question 13

HDI

Answer 13

Human development index