Measuring Macroeconomic Activity I (Production, Income and Expenditure) Flashcards Preview

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Flashcards in Measuring Macroeconomic Activity I (Production, Income and Expenditure) Deck (13)
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1

NIPA

National Income and Product Account

2

3 ways to determin GDP

1. Product Approach

2. Income Approach

3. Expenditure Approach

3

Product Approach

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

4

Income Approach

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

5

Expenditure Approach

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

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

6

GNP ( GNI )

GNDP ( GNDI )

Gross national product ( gross national income )

Gross national disposable product ( gross national disposable income)

7

From GDP to GNP

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

GDP + BPI = GNP

8

BPI ( NFIA)

Balance on primary income ( net factor income from abroad )

9

From GNP to GNDP

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

GNP + BSI = GNDP

10

BSI ( NUT )

Balance on secondary income ( net unilateral transfers )

11

NDP

Net domestic product

12

From GDP to NDP

GDP - consumption of fixed capital ( depreciation )
= NDP

13

HDI

Human development index