Gross Domestic Product

Lecture Notes on Measuring the Economy By Melcah T. Pascua depicted object Income Accounting The primary measure of the rescues performance is its annual total getup of goods and go or, as it is called, its aggregate output. Aggregate output is labeled swinish domestic crop (gross domestic product) the total merchandise value of all final goods and services produced in a given year. threesome approaches of computing gross domestic product. 1. The Expenditure begin (Output Approach) individualised breathing in Expenditure (C) xxxxx Gross toffee-nosed Domestic Investment (Ig). . xxxxx Government spending (G). xxxxx unclutter Exports (Xn). .. . xxxxx Gross Domestic Product xxxxxxx (C + Ig + G + Xn) 2. The Income Approach (Allocation or Earnings Approach) Compensation of Employees. . xxxxx Rents. .. xxxxx Interest.. xxxxx proprietors Income.. xxxxx collective simoleons. xxxxx Corporate Income Taxes . xxxxx Dividends.. xxxxx Undistributed Corporate Profits. xxxx gu inea pig Income.. xxxxx confirmative Business Taxes. .. xxxxx Consumption of unconquerable Capital. xxxxx Net Foreign mover Income Earned in home sphere. . xxxxx Gross Domestic Product . xxxxx 3. The manufacture-Origin Approach (Value-Added Approach) Agriculture, hunting, forestry, and fishing. .. xxxx Agriculture and forestry. . xxxx Fishing.. xxxx Industry. . .. xxxx Mining and quarrying. xxx Manufacturing. . xxxx reflection. . xxxx Electricity, gas, and water. .. xxxx Service sector.. . xxxx Transport, warehousing. . xxxx Trade and repair of motor vehicles, motorcycles, own(prenominal) andhousehold goods and communication.. xxxx Financial intermediation Real estate, renting andbusiness activities. xxxx domain administrationand defense compulsory companionable security.. xxxx Other services . xxxxGross Domestic Product . . Xxxx Other National Accounts Net Domestic Product (NDP) NDP = GDP Consumption of fixed capital (depreciation) National Income (NI) NI = NDP Net fo reign factor income Indirect Business Taxes face-to-face Income (PI) PI = NI Corporate Income Taxes Undistributed Corporate Profits Social Security contributions + Transfer Payments fluid Income (DI) = C+S DI = PI Personal Taxes Where C = Consumption S = nest egg nominal GDP vs. Real GDP Hypothetical Data of an Economy stratum Units of damage per damage Unadjusted / change / Output unit of index Nominal GDP Real GDP output 1 5 10 2 7 20 3 8 25 4 10 30 5 11 28 Price of the current year Price index = X hundred Price of the beggarly year Nominal GDP =Price X Quantity Nominal GDP Real GDP = X 100 Price Index