Review Notes - GDP
- - definition (what is the difference between GDP &
GNP?)
- - uses of GDP?
- - How do you measure GDP?
- - expenditure approach: GDP = C+I+G+(X-M)
- - income approach: NI = wages + proprietor's income +
corporate profit + rent + interest
- - what is value added?
- - how are GDP and NI reconciled?
- - NDP = GDP - depreciation
- - NI = NDP - indirect business taxes + net income
earned abroad
- - additional definitions
- - National Income
- - less corporate profits, social security taxes,
and net interest
- - plus transfer payments, personal interest, and
dividends
- - equals Personal Income (PI)
- - Disposable Personal Income (DPI) = PI - personal taxes
- - what are the problems with GDP?
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