GDP
- Total Market Value of all goods and services produced within a country's borders within a given year.
- A measure of what a citizen's produce and whether they produced these items within its borders.
- Used or Secondhand Goods (Avoid double or multiple counting)
- Intermediate Goods (Goods that require further processing before they are ready for final use)
- Gifts/Transfer Payments (Ex. SSN, Scholarship) (Public or Private)
- Unreported Business Activities (Tips)
- Ilegal Activites (Drugs, Weapons etc)
- Stocks and Bonds (Financial Transactions)
- Non-Market Activities (Volunteering/Family)
- C+IG+G+Xn (Exports-Imports)
- 67% of an economy
- Purchase of all final goods and services.
- New Factory Equipment
- Construction of Housing
- Unsold Inventory of products built in a year
- Factory Equipment Maintenance
- Government Purchases of Goods and Services
- Always Exports-Imports
Trade
- Exports - Imports
- T: + Surplus
- T: - Deficit
- Government Purchases of Goods and Services + Government Transfer Payments - Government Tax/ Fee Collection
- B: + Deficit
- B: - Surplus
- Option One: Compensation of employees + Rental Income + Proprietor's Income + Interest Income + Corporate Income
- Option Two: GDP-Indirect Business Taxes - Depreciation - Net Foreign Factor Payment
- National Income - Household Taxes + Government Transfer Payments
- GDP - Depreciation (Consumption of Fixed Capital)
- GNP - Depreciation
- GDP + Net Foreign Factor Payment
- Net Private Domestic Investment + Depreciation
Don't forget that Expenditure Approach is adding up all the spending on final goods and services produced in a year and can be proven with receipts. Income approach is adding up all the income that resulted from selling all final goods and services produced in a given year but it has no proof. Also whatever you get for expenditure has to equal income.
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