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CHP 7 formulas
| Question | Answer |
|---|---|
| Expenditures/output approach: | GDP = Consumption expenditures by households + Investment expenditures by Businesses + Gov purchases of goods and services + Expenditures by foreigners |
| Income/allocations approach:(national income) | GDP = Wages + Rents + Interest + Profits(Proprietors Income + Corporate Profit) + Taxes on production/imports + Statistical Adjustments - Net foreign factor income + Consumption of fixed capital |
| Net Export: | Xn = Exports(X) - Imports(M) |
| Personal Consumption Expenditures: | C = Durables gods + Nondurable goods + services |
| Gross Private Domestic Investment: | Ig = Final purchases of capital goods + Residential construction + expenditures on the R&D of new tech + Money spent on creation of art/music/etc. + Changes in inventories |
| Government Purchases: | G = gov expenditures on public services + public owned capital + gov R&D |
| Imports: | M |
| Exports: | X |
| GDP: | C + Ig + G + Xn |
| Net Rent | Gross rental income - depreciation of the rental property |
| Profit | Proprietor's income + Corporate Profits |
| Corporate Profits | Corporate Income taxes + Dividends + Undistributed corporate profits |
| National Income to GDP | National Income - Net foreign factor income + Consumption of fixed capital + Statistical discrepancy |
| Net foreign factor income(Net foreign Income) | Income earned by Americans overseas - Income earned by foreigners in the US |
| Statistical Discrepancy | Since recording income is hard to be precise. |
| Net Domestic Product | NDP = GDP - Consumption of fixed capital (depreciation) |
| National Income | NDP - Statistical Discrepancy + Net foreign factor income |
| Personal Income | National Income - Taxes on production/imports - Corporate income taxes - Social Security Contributions - Undistributed Corporate profits + Transfer payments |
| Disposable Income | DI = consumption(C) + Saving(S) or Personal Income - Personal Taxes |
| GDP to DI | GDP to NDP to NI to PI to DI |
| Price Index in given year | (price of market basket in specific year / price of same market basket in base year) x 100 |
| Real GDP | Nominal GDP / Price index(in hundredths) |
| Price Index(in hundredths) | nominal GDP / real GDP |
| Net private domestic investment | NPDI = GPDI - depreciation(consumption of fixed capital goods) |
| Price Index(without GDP) | price level of a year/x = price level of base year/100 |
Created by:
MathMatt
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