National Income Flashcards
1
Q
GDP equation expenditure method
A
TE = C + I + G + X - M
2
Q
What occurs at market equilibrium?
A
TE = TY = TO
3
Q
standard of living equation
A
real GNP / population
4
Q
GNP equation
A
GDP + net property income from abroad
5
Q
NNI equation
A
GNP - capital consumption
6
Q
GDP
A
value of all final goods and services produced in an economy during a given time period
7
Q
difference between GDP and GNP?
A
- GNP takes into account income earned by a country’s citizens abroad and money sent abroad
- GDP only accounts for the income earned within a country
