January 28, 2015
- Expenditure Approach: method for calculating GDP that totals consumption, investment, government spending and net exports. Although GDP can be calculated through other methods, the expenditure method is the most common.
- Income: Add up all income earned by households and firms in a single year.
- GDP= W+R+I+P+ Statistical Adjustments
- Wages- (compensation of employment, salary, pension)
- Rent- (tenancy to landlord, lease payment by a corporation for the use of their space)
- Interest- Amount of money paid by private businesses to the suppliers of loans used to purchase capitol
- Profit- Corporate income taxes, dividends, undistributed corporate offices
- Budget: Government purchases of goods and services + government transfer payments
- Positive Number= Budget deficit
- Negative Number= Budget surplus
- Trade: Exports- imports
- GNP: GDP+Net foreign factor income
- NNP: GDP- Depreciation
- National Income: GDP- indirect business taxes- depreciation- net foreign factor payments
- Disposable Personal Income: NI- personal household taxes+ GTP
I think it would be great if you added some visual because i feel like it would be mote helpful. Over all i think your notes were very helpful to me because you divided it up into different sections making it easier to read and find thing easily.
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