Expenditure Approach- Add up all spending on final goods/Services produced in given yr.
C+Ig+G+Xn
Income Approach- Add up all income that resulted from selling all final goods and services provided in a given year.
GDP=W+R+I+P+Statistical Adjustments
Statistical Adjustments- Indirect business taxes, depreciation(Consumption of fixed capital), Net foreign factor payment
National Income- Add All
Compensation of Employees- include wages salaries, fringe benefits, social security contrib., health, pension plans
Rents- Income of property owners
Interest- Income that is paid by someone to the owner of a loan
Corporate Profits- Income of stockholders in a corporation
Proprietor's Income- income of sole proprietor or partnership
Or GDP-Indirect Business Taxes-Depreciation- Net foreign Factor
Budget Surplus/Deficit- Govt purchases+ Transfer payments -Gov tax fee collection.
If positive= Deficit; If negative, Surplus
Trade Surplus- Exports- Imports
Positive= Surplus, Negative= Deficit
Disposable Personal Income-
National income- Personal Household Taxes+ Government Transfer Payments
Net Domestic Product(NDP)= GDP-Depreciation
Net National Product(NNP)= GNP- Depreciation
GNP=GDP+Net foreign factor payment
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